Google buys its HQ for over €100m

Google has just bought the two D4 buildings it has been renting as its European headquarters, writes JACK FAGAN

GOOGLE has exchanged contracts to purchase two further office buildings at Barrow Street in Dublin 4, for slightly over €100 million. Two weeks ago the internet search company also bought the newly-built Montevetro block through Nama in the same area for €99 million.

The latest acquisition includes Google’s European headquarters which extends to 18,580sq m (200,000sq ft) and is due to be upgraded in the coming months.

The Montevetro block on the opposite side of the road has a floor area of 19,000sq m (205,000sq ft) and will open the way for Google to substantially increase its Dublin workforce, which is already heading for 2,000.

Alternatively it may use the 15-storey block to accommodate workers currently based at three other locations, Grand Canal Plaza, Grand Mill Quay and East Point Business Park .

The European HQ includes Gordon House and Gasworks House, which were developed by Liam Carroll, whose property business has since collapsed owing the banks an estimated €1.2 billion.

The two buildings were sold by receiver David Hughes of Ernst Young, acting on behalf of Bank of Scotland (Ireland).

Google has been paying an annual rent of €8 million for the adjoining blocks under a lease which has another 10 years to run.

Montevetro was built by Treasury Holdings and sold by Nama after it took over responsibility for bank loans held by the Dublin development company.

Nama is understood to have made only a small profit from the sale after sharing the €99 million with CIÉ, owners of part of the site on which it is built. The Grand Canal Dock Dart station is now operating beside the block.

The price paid by Google – the equivalent of €4,850 per sq m (€450 per sq ft) for the new building is considered on the strong side but company sources say it was prepared to pay slightly over the odds because of its strategic importance and its high- quality finish.

Office buildings like Montevetro would have been let at around €700 per sq m (€65 per sq ft) during the boom years but have now fallen to around half that figure.

The steep decline in rents has meant that there will be few, if any, new office developments completed around the city for the foreseeable future. There are currently only five office buildings in Dublin 2 and 4 with floor areas above 6,965sq m (75,000sq ft).

Despite the serious economic problems now facing the country, Dublin is continuing to attract foreign investment due in part to the lower rents available.