Modernised office building in Dublin 4 goes on sale for €24.5m

Newly named Two Haddington Buildings leased to Japanese advertising agency

Two Haddington Buildings on Haddington Road, Dublin 4, has an overall floor area of 10,497sq m

Two Haddington Buildings on Haddington Road, Dublin 4, has an overall floor area of 10,497sq m

 

A newly refurbished office building to be rented by a Japanese advertising and public relations firm on Haddington Road in Dublin 4 is expected to be of interest to Irish and overseas funds when it is offered for sale from today at more than €23.5 million. Selling agents Savills and HWBC said the investment will show a yield of 5.5 per cent, allowing for new increased acquisition costs of 8.46 per cent, and a capital value of about €828/sq ft.

The newly named Two Haddington Buildings originally formed part of the Hibernian Insurance Company’s three headquarters buildings, with an overall floor area of 10,497sq m (113,000sq ft), at Haddington Road and Percy Place.

The buildings were bought at the height of the property boom in 2006 by Kildare businessman Gerry Conlon. The investments were back in the news in 2014 when they figured in the Project Spring loan book associated with Mr Conlon, which was bought by Deutsche Bank.

The bank has funded a comprehensive upgrading of Two Haddington Buildings, installing the latest electrical and air conditioning systems as well as new showers, changing rooms and bicycle bays. The five-storey headquarters-style block extends to 2,637sq m (28,385sq ft) and comes with 11 surface car-parking spaces accessed from Percy Place.

10-year lease

The block has just been let to Dentsu Aegis Network, a subsidiary of Japanese advertising and public relations company Dentsu, which has signed a 10-year lease at an initial rent of €516/sq m (€48/sq ft). The rent roll will be more than €1.4 million. Dentsu is currently fitting out the newly refurbished building to accommodate about 130 staff.

Savills and HWBC have also recently launched a marketing campaign to let Three Haddington Buildings, a headquarters-style block with a floor areas of 1,860sq m (20,020sq ft) over four levels, which are currently being modernised. The joint agents are quoting €560/sq m (€52/sq ft) and €4,000 for each of the 14 parking spaces. The building is to be ready to move into next summer.

The owners also intend to upgrade the 3,900sq m (42,000sq ft) of space in One Haddington Buildings in 2018.

Roisin Rafferty of Savills said the sale of Two Haddington Buildings is an excellent opportunity to acquire a blue chip investment in a market with a diminishing supply of good quality office space. Pat Campion of HWBC said the quality of the covenant together with a 10-year income certainty offers a secure office investment in a prestigious location.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
GO BACK
Error Image
The account details entered are not currently associated with an Irish Times subscription. Please subscribe to sign in to comment.
Comment Sign In

Forgot password?
The Irish Times Logo
Thank you
You should receive instructions for resetting your password. When you have reset your password, you can Sign In.
The Irish Times Logo
Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.
Screen Name Selection

Hello

Please choose a screen name. This name will appear beside any comments you post. Your screen name should follow the standards set out in our community standards.

The Irish Times Logo
Commenting on The Irish Times has changed. To comment you must now be an Irish Times subscriber.
SUBSCRIBE
Forgot Password
Please enter your email address so we can send you a link to reset your password.

Sign In

Your Comments
We reserve the right to remove any content at any time from this Community, including without limitation if it violates the Community Standards. We ask that you report content that you in good faith believe violates the above rules by clicking the Flag link next to the offending comment or by filling out this form. New comments are only accepted for 3 days from the date of publication.