Central Bank leases new offices

THE Central Bank is to set up another large office complex in Dublin before Christmas and with its agents already looking for additional long-term space to rent in another location, it could shortly end up with five different office centres in the city.

The bank has just agreed to sub-lease 5,574sq m (60,000sq ft) at Iveagh Court on Adelaide Road for a period of almost five years. It will be paying a rent “in the mid €20s per sq ft” for the accommodation, which comes fully furnished and fitted out.

The high quality space was recently vacated by State Street Bank when it relocated to a newly-built block at Sir John Rogerson’s Quay in the south Dublin docklands.

State Street is understood to have been paying in excess of €430 per sq m (€40 per sq ft) under a short lease at Iveagh House, which was developed by McGarrell Reilly.

As well as its headquarters in the city centre, the Central Bank also has extensive office accommodation close by in Dame Street and another major operation at Spencer Dock, where it is renting 5,574sq m (60,000sq ft) from Treasury Holdings. The currency division is based in Sandyford.

At a time when most commercial banks are reducing their overheads and looking at ways of laying off staff, the Central Bank has signalled that it will be looking for further long-term office accommodation which could range in size from 4,645-13,935sq m (50,000-150,000sq ft).

While most large organisations usually prefer to centralise their various functions in the interests of efficiency and to minimise costs, the bank has broadened its search for its latest.. There will be strong competition among developers to lease space to the bank because of the gilt-edged security at a time when many tenants are either falling behind with their rents or seeking reductions.

The bank, which is being advised by James Nugent of Lisney, has been severely criticised for its failure to regulate the banking sector and its failure to warn of the dangers of the property bubble which led to the present banking crisis. .

The Central Bank is not the only major player looking for more office space in Dublin. A recent study has shown that there is currently a demand for up to 46,450sq m (500,000sq ft) of offices, much of it in relatively small lot sizes.

The ESB is believed to be close to signing off on a deal to rent up 4,645sq m (50,000sq ft) for administrative offices at Swift Square in Santry, Co Dublin. The state body, which is being advised by Conor Whelan of BNP Paribas, is likely to be paying a rent “in the low teens” – somewhere between €129 per sq m (€12 per sq ft) and €161 per sq m (€15 per sq ft). The terms will also include a rent-free period.

Darren Nugent of CB Richard Ellis advised the Cosgrave Group which developed Swift Square

Meanwhile the ESB has renegotiated the rent on Clanwilliam House, off Lower Mount Street, Dublin 2, which is owned by the Irish Airline Pension Fund.

Following the expiry of the old lease, the rent for the 3,716sq m (40,000sq ft) building has been dropped from €398 per sq m (€37 per sq ft) to around €161 per sq m (€15 per sq ft). Jones Lang LaSalle advised the pension fund and BNP Paribas acted for the ESB.

Also actively looking for a new Dublin headquarters of up to 6,967sq m (75,000sq ft) is NIB which plans to relocate from Tallaght to the city centre, possibly the Dublin docklands.

Computer games specialist Key Words International has just agreed to lease 1,393sq m (15,000sq ft) at Whelan House in South County Business Park, Leopardstown. Darren Nugent of CB Richard Ellis advised the company which is to pay a rent of €161 per sq m (€15 per sq ft) under a lease with break options after five years.

Nugent has also handled the letting of 1,858sq m (20,000sq ft) to Norkom Technologies at Chapel House on Parnell Street. The company will be paying a rent of €161 per sq m (€15 per sq ft) under a 10-year lease with a break after five years.

Chapel House was developed by a company once controlled by Liam Carroll and now in receivership.

Online gambling firm Pocket Kings, currently considering whether to relocate to a new 6,503sq m (70,000sq ft) head office, has been looking at Red Oak House in South County Business Park, Grand Central and Cherrywood.

It is currently paying a rent of €215 per sq m (€20 per sq ft) for its offices in Cherrywood.

Another high profile company on the lookout for offices is Tullow Oil which would settle initially for 3,716sq m (40,000sq ft) with the option to expand to 5,574sq m (60,000sq ft).

US internet company Sales Force has appointed James Nugent of Lisney to find 7,432sq m (80,000sq ft) in south Dublin.

Other notable companies on the lookout for space include Macquarie Bank of Sydney, 929sq m (10,000sq ft); Anglo Irish Bank, 3,716sq m (40,000sq ft); MD7 telecommunications, 150-200sq m (1,614-2,152sq ft) rising to 500sq m (5,382sq ft); Gold Core, 350sq m (3,767sq ft) rising to 500sq m (5,382sq ft); Linkedin, social networking service, 650sq m (7,000sq ft).