ACC Bank expected to buy offices in centre for £17m

ACC Bank is believed to be close to agreement on moving its headquarters to a large new office development nearing completion at Charlemont Street, Dublin 2. If the deal goes ahead as expected, it will be the largest letting of new offices in the city for over two years.

ACC is also likely to consider buying the three office blocks outright in the Charlemont Exchange scheme at a cost of around £17 million.

The valuation is based on a yield of 7 per cent on the offices which are to be rented at £18 per square foot. With 90 car-parking spaces renting at an additional £1,250 each, the overall rent roll is likely to be £1,282,000.

Sherry FitzGerald is handling the negotiations for ACC and Hamilton Osborne King is acting for the developer, London-based Irish businessman J.A. Murphy.

ACC Bank currently occupies and owns a 45,000-square-foot office block in Hatch Street and another 10,000 square feet in Harcourt Street. The Hatch Street building is now about 20 years old and a proper refurbishment - normally carried out after that period - could only be embarked on when it is vacated. Faced with this dilemma and the need to centralise its operations, it is no surprise ACC is looking at Charlemount Exchange.

ACC is likely to secure in excess of £5 million for its present headquarters if it decides to move.

Charlemont Exchange was the first major speculative office development in Dublin city centre since 1990. Four new buildings with a total of 88,000 square feet are due to come on stream later this year.

Charlemont Exchange is located directly opposite The Barge pub on Charlemont Street. It will adjoin the 195-bedroom Stakis Dublin International Hotel which is to open later this year. Cosgrave has completed a large apartment development on the remainder of the 4.5-acre site which was assembled over many years by Albert Holdings, a company controlled by Mr Murphy.

The four office buildings will vary in size from 20,625 to 25,941 square feet and will be joined together to allow any number of them to be linked. The Luas light rail system is to run through the site.

The new Government is to decide shortly on the future role of ACC, ICC and the Trustee Savings Bank. A proposed merger between the three banks was not proceeded with by the outgoing government.