Green REIT to pay €23m for offices on Molesworth

The rush by Green REIT to assemble a substantial property portfolio is continuing with the newly launched company due to announce that it has agreed to pay in the region of €23 million for four adjoining buildings on Dublin’s Molesworth Street including the offices of estate agents Savills.

The four buildings were originally acquired during the property boom by a four-man consortium headed by investor Derek Quinlan and were expected to be offered for sale on the open market on the instructions of Grant Thornton who were appointed receivers by Danske Bank.

Last month, Green REIT bought 12 properties in Project Arc from Danske Bank for around €135 million and, in a follow up operation, it also persuaded the bank to sell the Molesworth Street portfolio in an off-market deal. It includes two multi-let Georgian houses at 30 and 31, Savills’ current offices (1,114sq m/12,000sq ft) at number 32 and a newly refurbished building at number 33 which is to become Savills’ new Dublin headquarters.

The agency has apparently agreed a rent of €236 per square metre (€22 per square foot) for the office space, which extends to 1,858sq m (20,000sq ft). The next rent review, in five years’ time, is capped at a 15 per cent increase.

Green REIT is also said to be seeking a partner or partners to pitch for the Central Park office and multi-family complex in Leopardstown which is not expected to change hands until the new year.

Jones Lang LaSalle are guiding more than €250 million for what is the largest single property asset to be offered for sale by Nama.