PACKAGING GROUP Smurfit Kappa is believed to be in advanced talks with the National Asset Management Agency (Nama) about buying back its headquarters at Beech Hill in Clonskeagh, Dublin, for €8 million.
Smurfit sold the property in 2003 for €25 million to a consortium of investors led by developer Paddy Kelly.
That deal was financed by Anglo Irish Bank and was one of the loans transferred to Nama by the failed financial institution now owned by the State.
It is not clear how much Nama paid for the loans but Anglo is likely to have taken a significant haircut on the transfer.
In March, Nama appointed Savills as property receiver to the seven-acre site. It was one of a number of assets that Nama took charge of at that time. Savills subsequently appointed estate agent CBRE to handle the sale of the property.
Beech Hill has been home to Smurfit Kappa and its predecessor company Jefferson Smurfit Group, for about 30 years.
It comprises two hexagonal-shaped office blocks with an internal floor area of 35,435 sq ft and 70 car parking spaces. It is situated close to the David Lloyd tennis and fitness complex.
Smurfit Kappa pays an annual rent of €500,000 at the site. The lease is due to expire on November 12th, 2013.
The consortium led by Mr Kelly had intended to build a substantial development on the site during the boom years.
Planning permission was granted by Dún Laoghaire-Rathdown County Council in September 2009, and subsequently by An Bord Pleanála for a mixed-use scheme of offices and student accommodation.
This was to take place in conjunction with University College Dublin, which owned an adjoining three-acre site. UCD and Swedish company Ericsson, which also has a neighbouring property, have rights of way over the site.
No comment was available yesterday from either Nama or Smurfit Kappa.
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