Irish Life to sell Earlsfort Terrace block

Agents HWBC are seeking offers in excess of €6 million for Dolmen House, a modern five-storey office building in a prime location on Earlsfort Terrace, close to the junction with St Stephen’s Green, Dublin 2.

Agents HWBC are handling the sale of the building which is diagonally opposite the site of the former Canada House office block, which is being developed by Denis O’Brien.

The 1,161 sq m (12,500 sq ft) block with 15 basement parking spaces dates from 1997and is let to Jerdip Properties-trading as Arthur Cox – on assignment from the original tenant Dolmen Stockbrokers. The current rent of €680,000 breaks back to €527 per sq m (€49 per sq ft) and €4,500 per car space.

The 25-year lease runs out in June, 2025.

However the tenant has a break option on the expiry of the 15th year of the term subject to 12 months’ notice and 12 months’ rent payment.

The tenant has served notice to break and is due to provide vacant possession on June 30th, 2015.

Arthur Cox is understood to be relocating to a new hq building yet to be built by Clancourt on Hatch Street.

With a severe shortage of high-quality modern office space in prime city locations, t strong interest in the building is expected from owner-occupiers and investors .

The Dublin 2 vacancy rate is now below 3 per cent and as a consequence rents have risen within 12 months from €322 to €484 per sq m (€30 to €45 per sq ft).

The €6 million-plus being sought for Dolmen House reflects a price of €5,166 per sq m (€480 per sq ft) after allowing for purchasers costs of 4.46 per cent.