Tax-break Tullamore offices

OfficeInvestmentWith tax breaks rapidly running out in the property industry, there is likely to be strong interest in newly completed office suites in Tullamore, Co Offaly, which come with valuable capital allowances.

Joint agents Finnegan Menton and Jones Lang LaSalle are marketing the suites in the striking new Castle Building of 5,629sq m (60,950sq ft) in the centre of the town.

Purchasers will be able to avail of a minimum of 92 per cent capital allowances. The office units range from 404sq m (4,350sq ft) costing from €1.7 million to units of 774sq m (8,310sq ft) priced at €3.2 million. Alternatively, the entire block is available at €21 million.

For owner-occupiers the tax allowances are available against trade or personal income while investors can offset it against Irish rental income. This will make the building quite attractive to investors with a big annual tax bill.

The selling price works out at €4,144 per sq m (€385 per sq ft) for suites while the selling price for the entire block equates to €3,498 per sq m (€325 per sq ft). The joint agents are also quoting rents of €215 per sq m (€20 per sq ft) for long term leases.

Nicholas Corson of Finnegan Menton says the block has been completed to a particularly high specification including air conditioning, raised access floors complete with both power and Cat 5 cabling.

The facilities include a conference and restaurant which will be available to all occupiers. There are 120 car-parking spaces available and a crèche is currently under construction on the site.

Tullamore, a thriving midlands town with a population of about 15,000, is to accommodate part of the Department of Finance under the Government's decentralisation plan. A site for the State offices has already been identified.