Property investor Hibernia Reit is expecting to achieve rents of
more than €592 per sq m (€55 per sq ft) for office space on Windmill Lane in Dublin's south docks where it is developing 11,148sq m (120,000sq ft) in a joint venture with US investor Starwood Capital.
Hibernia’s estimate of likely rent levels when the building is completed in the second half of 2017 will be of interest to various other developers who are also gearing up to begin construction on a number of large office blocks in the docklands.
The rent likely to be paid will depend on the number and size of the new developments being promoted mainly by Nama and also the timetable for their completion. Some city centre rents are already well ahead of the €500-plus mark, the most notable being the Denis O'Brien-owned LXV building at the corner of St Stephen's Green and Earlsfort Terrace. It has been pre-let to international airline leasing company Aercap at €645 per sq m (€60 per sq ft). Several other smaller lettings have already exceeded that rent because of the scarcity of space in some of the best city locations.
Hibernia Reit purchased the one-acre site from Starwood for €7.5 million in June 2014. At the time Starwood was granted an option to buy it back in a 50:50 joint venture partnership at purchase price plus a return of 7 per cent, plus costs incurred to date by Hibernia.
Gráinne Hollywood, Hibernia Reit’s development consultant, said the new building to be named “IWML” would be one of the most striking developments in the docks and would prove a catalyst for the wider regeneration of the area.
The building is expected to create a dramatic impression through its extra height entrance doors and double height lobby.
The bright and expansive reception area will have both restored stonework and contemporary finishes to give the block a distinctive look.
Columns are to be used sparingly throughout the building to allow large span floor plates of up to 25,600sq ft to maximise the flexibility for occupiers.
Lighting levels are also expected to impress with 3m high ceilings, extensive glazing and an atrium courtyard ensuring deep access to natural light.
The block will also include 15 apartments and artisan retail facilities which will re-energise the iconic address once known only for the recording studio which had been used by U2, the Rolling Stones and Van Morrison.
Deirdre Costello of leasing agent JLL said the company expected plenty of interest from both indigenous and overseas occupiers for what would be an imaginatively designed office building.
Aisling Tannam of joint letting agent DTZ Sherry FitzGerald said that apart from the fact that it would be one of the most striking office buildings in the city, it would also be finished with hotel-standard shower and changing facilities as well as ample bicycle and parking spaces.
