PwC to move to Spencer Dock

Pricewaterhousecoopers (PwC), one of Ireland's largest professional services organisations, has agreed in principle to relocate to Spencer Dock in the Dublin docklands if planning permission is eventually granted for the giant project.

The company announced yesterday that it was at "an advanced stage of negotiations" to rent 200,000 sq ft by early 2004 to replace its existing offices at Wilton Place and George's Quay.

A consortium led by Treasury Holdings, which is promoting the development, had offered PwC highly attractive terms, which probably include a high spec fit out and a staggered rent, in return for a commitment to be one of the anchor tenants.

However, sources close to the consortium have denied that the partners in PwC are to be paid a reverse premium to locate in Spencer Dock.

John Dillon, a partner in PwC, said it was a complex transaction "with loads of components to it". They had agreed to keep the terms confidential.

Two weeks ago, the Minister for Finance closed off a loophole which allowed developers to pay reverse premiums as an inducement to enter into a lease agreement at a level above the open market rent.

Developers could claim tax relief while the partners could get the premium tax free.

Donal O'Connor, senior partner at PwC in Ireland, said their own rigorous review of various possible locations convinced them that Spencer Dock would be the best location for their people and their business.

They were particularly focused on transport and social infrastructure and they were convinced that Spencer Dock would satisfy their requirements.

Treasury Holdings is planning to develop at least five million sq ft of mainly office buildings on the 51-acre site in the Custom House Docks.

A planning application for a major part of the high density scheme will be lodged with the Dublin Docklands Development Authority (DDDA), which is in the process of adopting a draft planning scheme for the area stretching from Spencer Dock to the Point Depot.

Final approval rests with the Minister for the Environment, Mr Dempsey. The DDDA is empowered to grant planning approval for 31 acres of the site while the remaining 20 acres comes under the jurisdiction of Dublin Corporation.

Mr Dempsey is likely to come under pressure to agree to a higher density than that being adopted by the DDDA because Spencer Dock is destined to become a major trannsportation hub.

The consortium has the option of seeking planning permission for the entire site from the corporation if it is dissatisfied with the volume of space allowed by the DDDA. The corporation granted permission in August, 1999, for an overall development of 4.6 million sq ft including a National Conference Centre but this was overturned less than a year later by An Bord Pleanβla.

Architects Scott Tallon Walker are handling the revised scheme which will have two hotels, up to 3,000 apartments, restaurants, bars and a health centre as well as offices.

The consortium would prefer at this stage to avail of the DDDA's fast-track planning process but whether it can secure approval for its high density scheme through this process is still an open question.

Maurice Harte, chief executive of Treasury Holdings, said that the combination of the "DDDA's vision, Scott Tallon Walker's imaginative design and the transportation facilities planned for the site" had attracted PwC as potential anchor tenant - an enormous vote of confidence in the development.

The DDDA said that the decision by PwC would send a very positive signal to other occupiers and investors.

In addition to the fast-track planning process available when the planning scheme was signed off, the provision of adequate public transport serving the area through trains, Luas, buses and bridges would be critical to the successful development of the entire area.