Credit Suisse set to buy IFSC’s Century House for about €66m
Six-storey building leased to Bank of Ireland will show net return of 5% after rent review
New Century House in the IFSC is rented by Bank of Ireland
Credit Suisse is believed to be the top bidder, at about €66 million, for the Grade A building, which was bought just over four years ago by Hibernia Reit for €47million. The investment will show a net return of about 5 per cent after a rent review early next year.
The six-storey over-basement building at Mayor Street in the north docks dates from 1999 and has a net internal floor area of 7,432sq m (80,000sq ft) as well as basement parking for 87 cars. The lease runs until 2024. Next January’s rent review will take into account an upwards only clause.
The current rent roll of €2,847,446 equates back to a figure in the low €30 per sq ft. The selling price is expected to work out to about €74.32 per sq m (€800/sq ft).
A feasibility study by Shay Cleary Architects suggests that the block can be extended by a further 3,158sq m (31,000sq ft) of office space by infilling the atrium at each level, reconfiguring the existing cores, and developing an additional floor to bring the overall capacity up to 10,609sq m (114,200sq ft).
New Century House was developed by Quinlan Private with the benefit of tax breaks then available in the IFSC.
Credit Suisse has played a prominent role in Ireland’s property investment market in recent years, having bought a number of high-profile properties, including the Golden Island shopping centre in Athlone for €43 million; the former Bord na Móna headquarters on Baggot Street for €36 million; La Touche House, one of three office buildings at the front of the IFSC, for €35 million; and One Grand Parade overlooking the Grand Canal in Dublin 6 for €18.1 million.