THE CENTRAL Bank is about to complete formal contracts to rent a newly completed office block at Spencer Dock in the north Dublin docklands, writes Jack Fagan.
The additional 5,774sq m (60,000sq ft) of space will be used to accommodate an overflow of staff from the Dame Street headquarters and another building on the same street. They deal with an ever increasing role in the financial services sector. Although the Central Bank deal coincides with a rush by many companies to wrap up new letting transactions before a number of alterations to the VAT system were introduced yesterday, the bank is not affected by tax changes because any surplus funds go directly to the exchequer.
The bank is believed to have agreed a rent of around €516 per sq m (€48 per sq ft) for the West Block at 3 Spencer Dock, one of two self-contained, seven-storey buildings which will adjoin the National Convention Centre currently under construction. The long lease of the high quality building will include a break option in year 15.
James Nugent of Lisney, who acts for the Central Bank, said that although the transaction is not affected by the VAT changes, it was one of a number of deals under negotiation before the July 1st deadline. Several solicitors had done "Trojan work" to ensure that transactions were completed before the deadline.
The West Block will be the first speculative office development to be let in Spencer Dock, though it has clearly benefited from the success of PWC's huge office complex and that of the Belgian bank Fortis.
Jim O'Reilly of agent HT Meagher O'Reilly, who advised Treasury Holdings, said they already had interest in the second, similarly sized block from companies interested in trading alongside the Central Bank. The agency is quoting a rent of €645 per sq m (€60 per sq ft) for the block which is of interest to companies looking for a new headquarters and also others wanting to rent on a floor-by-floor basis.
The Lisney agency was also involved in a string of office deals in the run up to the changes in the VAT system. It advised Irish Life International in renting 1,142sq m (12,300sq ft) in Bloom House on James Joyce Street, off Gardiner Street in Dublin 1. The rent was €376 per sq m (€35 per sq ft) for the building which was developed by brothers Joe and Paddy Linders. Jim O'Reilly of HT Meagher O'Reilly is agent for the office complex which has another 2,787sq m (30,000sq ft) available.
Before the VAT changes came into effect Lisney also let 622sq m (6,700sq ft) in the RDS in Ballsbridge to an accountancy firm at a rent of €592 per sq m (€55 per sq ft) and also a suite of 560sq m (6,034sq ft) at Sandyford Business Park owned by Bank of Ireland Asset Managers at a rent of €269 per sq m (€25 per sq ft).
Lisney also assigned the lease of an office block of 1,207sq m (13,000sq ft) formerly occupied by Oracle at Herbert Street at a rent of €365 per sq m (€34 per sq ft). A public company also beat the VAT deadline by renting 1,021sq m (11,000sq ft) in The Grange mixed-use development on the Stillorgan Road. Savills HOK advised the tenants.
