CIÉ to partner with developer for dockland office block

Property at Grand Canal Quay adjoining Dart station could earn agency €1m annually

The CIÉ-owned site at Grand Canal Quay, which will be developed into an office block

The CIÉ-owned site at Grand Canal Quay, which will be developed into an office block

 

CIÉ will avail of the strong demand for good office sites in the Dublin docklands by enlisting a partner to develop a high-rise office block at Grand Canal Quay in Dublin 2.

The move comes as a range of developers and investment funds look for new development opportunities in the south docklands, where rents are €538-€645 per square metre (€50-€60 per square foot).

Rather than selling the 0.87-acre site adjoining Grand Canal Dart station, CIÉ wants to lock in to an income stream with the selected developer, who will be expected to handle the entire planning process and build out the office scheme.

The site, known as Boston Sidings, has frontage on to Macken Street and Grand Canal Quay/Clanwilliam Terrace and is likely to accommodate an office block of at least seven storeys, with an overall floor area of at least 11,148sq m (120,000sq ft). Big-name companies based nearby include Facebook, Google, Accenture and Mason Hayes & Curran.

CIÉ’s business strategy will include a 300-year ground lease subject to an annual rent linked to the consumer price index. Lisney estimates that CIÉ should be in a position to earn more than €1 million per annum by way of a premium rent or a 10 per cent share of the rent roll, whichever is greater.

“This is in accordance with the CIÉ policy of deriving the maximum benefit possible from their property assets in order to fund public transport investment into the future,” the company said.

Train sidings

Ross Shorten of Lisney said the site had been used as sidings for train services for many years but would soon be no longer required for this purpose. Interested parties will be invited to tender for the development opportunity by October 12th.

About two years ago CIÉ struck a similar deal with the Johnny Ronan Property Group before it lodged a planning application for a 22-storey tower adjoining Tara Street railway station.

The block was planned as the tallest in the city, but was recently refused planning permission by Dublin City Council. An appeal to An Bord Pleanála seems inevitable.