CIE seeks advisers for 18-acre Heuston Station site sell-off

Dublin site could be worth up to €326m in residential and commercial plan

CIE, the holding company for Irish Rail and Dublin Bus, is seeking real estate advice as it considers bringing 18 acres of land next to Dublin’s Heuston Station to market.

According to documents published on the Government’s e-tenders website, the potential development could provide over 150,000 square metres of commercial and residential floor space.

CIE is currently finalising a masterplan for the Heuston land, which would bring the development to market in phases.

The land could be worth as much as €326m.

This potential value is based on figures for development land sales provided by property consultants Finnegan Menton, which sold the nearby 1.65-acre landmark Hickeys site for €30m, which equates to €18.1m per acre.

CIE said in the documents, known as a call to competition, that the development of the lands must be used to foster transport orientated development (TOD).

A spokesman said the principle of TOD is to “concentrate higher levels of development within the direct catchment of high-capacity public transport”.

He added the Heuston development could help provide a “greater return on the investment in public transport infrastructure”.

In the pre-qualification questionnaire, CIE said it plans to generate an “ongoing revenue stream” from the sale of development rights of its lands at Heuston. It is envisaging a 300-year leasehold interest will be sold to an individual or consortium with the “financial wherewithal and experience of undertaking substantial city centre development”.

The proposed legal structure of the process will comprise an initial licence to enable the successful bidder for the development to secure planning permission and then construct on the site.

This would be followed by the grant of a long lease on “practical completion”. Bidders will also be asked to specify the proposed licence fee, which will be set at a minimum bid level, and also the premium rental level for the long lease.

Lorcan O’Connor, chief executive of CIE, has previously indicated he would like to see the agency’s land around Heuston developed.

Earlier this year he said there could be an opportunity to redevelop land at the 173-year-old station as a mixed-use development of homes, shops and offices.

Those interested in providing the advisory and marketing services have until December 2 to respond.