Leopardstown office park could make up to €200m
Nama may sell former Treasury-owned Central Park complex in one lot
The Central Park office park in Leopardstown Photograph: Alan Betson
The National Asset Management Agency is preparing to offload south Dublin’s most valuable suburban office complex, Central Park at Leopardstown, Dublin 18, in the expectation that it could sell for anything up to €200 million.
The park was one of the most valuable assets held by Treasury Holdings, Ireland’s largest property company, when it was declared insolvent with debts of around €2.7 billion. Around €1 billion of that sum is owed to Nama for taking over Treasury’s loans.
Accountants and professional services firm PwC will oversee the sale of Central Park as it continues to liquidate the property company headed by Johnny Ronan and Richard Barrett. Property agent Jones Lang LaSalle has been appointed to handle the sale of the park which is currently producing a rent roll of €15.5 million.
Recent reports suggest that Nama may have initially considered selling one of the five office blocks in the park – a 6,503sq m (70,000sq ft) building rented by Bank of America Merrill Lynch – to illustrate the strength of the market before proceeding with the disposal of the remaining investments.
Latest indications, however, are that the entire office complex may well be offered for sale in one lot given the strong level of overseas interest in high-end office investments in the Dublin area and the fact that there is a severe shortage of stock available.
Another critical selling point is that all the buildings in Central Park have as good, if not better, fit-outs as the best of the office buildings completed in the city docklands before the property crash.
The five buildings in the park have an overall floor area of around 60,385sq m (650,000sq ft) and though rents have fluctuated between €182 and €322 per sq m (€17 and €30 per sq ft), depending when the lettings occurred, the average rent roll equates to around €269 per sq m (€25 per sq ft).
Neither PwC nor Jones Lang LaSalle have commented on either the proposed sale or the likely selling price.
However, agents retained to advise overseas funds are speculating that with overall rents running at €15.5 million, the likely bidders would hope to achieve an income return of around 8 per cent. At that yield, a new owner could expect to pay in the region of €185.5 million for the huge office complex.