AIB Investment Managers (AIBIM) is to provide 50 per cent of the funding for a £14 million office development at Sandyford Industrial Estate, Dublin 16. The site at Arena Road is owned by a consortium headed by property developer Paddy Kelly, who recently began development work. The two four-storey buildings will have floor areas of 45,000 and 20,000 sq ft and an underground car-park. DTZ Sherry FitzGerald, the letting agent, is likely to be seeking £16 to £17 per sq ft for the buildings, which will be a short distance from a site where Green Property has just secured planning permission to develop about 350,000 sq ft of offices. A short distance away, at Leopardstown Road, Dublin's biggest office scheme with 1.75 million sq ft is also planned.
John Bruder of AIBIM says the level of speculative activity in the market at the moment is reasonably well balanced in relation to demand. However, prudent developers and investors would be well advised to keep a close eye on new projects starting up to avoid a situation where speculative schemes might be running ahead of demand.
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