ING Direct will cut its rent by well over 40 per cent by moving from St Stephen's Green to Dundrum Town Centre, writes JACK FAGAN
AFTER AN 18-month search for a new Dublin headquarters, the Dutch bank ING Direct has finally agreed to relocate to the office element of Dundrum Town Centre.
The new accommodation will adjoin the offices of RSA (formerly known as Royal Sun Alliance).
ING Direct, which has a staff of about 50 to handle wholesale banking, investment, life insurance and retirement services, is currently based in a mock Georgian building at 47/49 St Stephen’s Green owned by the Irish Airline Pilots Pension Fund.
The company has agreed letting terms for its new offices with Castlethorn Developments, owners of the successful Dundrum Town Centre.
ING is likely to be paying a rent of at least €236 per sq m (€22 per sq ft) for a single floor area of 929sq m (10,000sq ft) with several break options over the 20-year lease. The offices are on the top floor of the block fronting on to the Sandyford Road where several leading businesses include Hughes Hughes, Smoky Rock and Elverys.
Conor Whelan of BNP Paribas Real Estate, who advised ING Direct, said that during the 18-month search for suitable premises in the city and the suburbs the market had softened significantly.
Dundrum was eventually chosen on the basis that occupancy costs could be reduced without compromising on the standard of amenities available to businesses, he said. The venue also has the advantage of a Luas service which takes 12 minutes to reach Dublin city centre.
The saving for ING Direct will be considerable as it is paying €430 per sq m (€40 per sq ft) for the St Stephen’s Green premises. Conveniently, the lease runs out next September.
RSA also made a substantial saving on its office rent bill when it moved to 6,284sq m (67,640sq ft) in Dundrum a year ago. It is paying €269 per sq m (€25 per sq ft) with an 18-month rent-free period at the start, as well as a break option in year 10 of the 25-year lease. Apart from the high quality of the office accommodation in Dundrum and the convenience of the Luas service, the centre has a broad appeal for workers because of the huge variety of shops and restaurants – it has more food outlets than any other shopping centre in Ireland – and the availability of the cinema complex and other leisure facilities.
Roland O’Connell of Savills, who handled the letting for Castlethorn, is quoting a rent in the late €20s per sq ft for the remaining space of 2,787sq m (30,000sq ft) in the office element of Dundrum Town Centre.
