In Short

A round-up of this week's other stories in brief

AIB's computer centre to make around €40m

Most of the interest in AIB's computer centre in Donnybrook, Dublin 4, is apparently coming from apartment developers who are fully aware of the exceptionally strong prices available for good quality residential units in this area.

The 4,645sq m (50,000sq ft) office building, dating from the 1960s and the 1980s, will undoubtedly be demolished to make way for either apartments or modern offices. The site could accommodate up to 90 apartments, according to one firm of architects, but even such a large scheme would work out at about €450,000 per unit.

In the meantime, the bank is hoping to get around €40 million for the block which it will lease back for up to five years at a rent of €1.2 million per annum. The sale is being handled by Jones Lang LaSalle.

Irish developers spend over €52.5m on UK properties

Two Irish developers have this week been buying properties in the UK. Sean Mulryan's company, Ballymore, has paid £20 million (€29.623 million) for a long lease of an office building in Birmingham which adjoins its Snow Hill development. The 3,994sq m (43,000sq ft) block at 1/3 Colmore Row has an average unexpired lease term of 12.5 years. The yield will be around 5 per cent.

In London, Ray Grehan's Glenkerrin Homes paid paid £15.5 million (€22.96 million) for a development site of 2.1 acres at Pritt Steal in the Isle of Dogs. Hamilton Osborne King and Savills advised both developers.

Over €2.25m for shop at Eyre Square shopping centre

Hamilton Osborne King is seeking offers over €2,25 million for a retail investment at Eyre Square shopping centre in Galway.

The Early Learning unit in let on a 20-year lease from 1995 at €78,000 per annum. The investment includes capital allowances of €235,000. The 92.9sq m (1,000sq ft) shop is directly opposite Cafe Kylemore on the second level of the centre.

Swedish investor pays around €12m for Mount Street office

A Swedish investor has paid around €12 million for Behan House, an office investment at Lower Mount Street, Dublin 2, which was developed by a Dublin-based family trust.

The sale of the five-storey over garden level building will show an equivalent yield of 4.2 per cent. The purchaser apparently believes that rent in Lower Mount Street will show a significant growth once a number of buildings are redeveloped and relet. The block is producing a rent roll of €475,000 with most of the six tenants paying around €409 per sq m (€38 per sq ft).

Davin Auctioneers handled the sale while AtisReal Harrington Bannon advised the purchaser.

€1.7 million for High Street store near Christchurch

The site of the former Murphy's Pram and Nursery store near Christchurch at High Street, Dublin 8, is expected to make around €1.7 million when it is sold at tender next month through GVA Donal O Buachalla. There is full planning permission for the demolition of the two-storey over basement building and its replacement by a four-storey over basement retail and office building with 571sq m (6,146sq ft) of floor space. The business has been run by the Murphy family since 1942.

The same agent is suggesting a price of at least €1.3 million for a site of 0.53 of a hectare (1.3 acres) at Blessington Business Park in Co Wicklow.

Lettings at Gorey Town Centre

Most of the shop units in the planned new Gorey Town Centre in Co Wexford have been committed, according to Paul Fahey of Bannon Commercial. Dunnes Stores will trade out of the anchor store of 8,175sq m (88,000sq ft), providing competition in the fast-growing town for Tesco, Lidl, Aldi and Supervalu. Bannon is quoting rents of around €592 per sq m (€55 per sq ft) for units of 130sq m (1,345sq ft).

Final few office and retail units to rent at Sandyford centre

Hooke & MacDonald is marketing the final retail and office units in a new neighbourhood centre at Sandyford, Dublin 18. Centra is to anchor the scheme where there are still three shops available from 76-89sq m (818-958sq ft).

Rents will be from €382-€435 per sq m (€35-€40 per sq ft). Three offices between 100 and 180sq m (1,076 and 1,938sq ft) on the first and second floors are available at rents of €265 and €280 per sq m (€24 and €26 per sq ft).

Dublin ranked 11th best city location in Europe

A new survey of top companies across Europe shows that Dublin is now ranked the 11th best city in which to locate. This is one place higher than in a similar survey last year by agent Cushman & Wakefield. London remains the most popular location while five of the top 16 business locations are in Germany. Cushman's Dublin affiliates, Lisney, say that vacancy rates in the Dublin office market have fallen from a high of over 20 per cent to 11.5 per cent in the past four years.