The Irish Bank Officials' Association has paid in excess of £7 million for the Smurfit Paribas Bank building at 94 St Stephen's Green, Dublin 2. The premises are due to be vacated shortly by the bank following its takeover by Anglo Irish Bank.
The investment was sold by the Doyle Hotel Group as part of the reorganisation of its property portfolio in the run up to the sale of its hotels to its main rival, Jury's, for £200 million. Doyle Hotels have sold property sites and investments for around £42 million in recent months.
Hamilton Osborne King had been quoting a price in excess of £5.5 million for the bank building, which is producing an income of £290,000 per annum. Although the bank is due to move out shortly, Smurfit Ireland will have to take responsibility for the lease, which has another 19 years to run. Because of the shortage of office space in Dublin, Smurfit should have no difficulty in finding a replacement tenant for the 18,580 sq ft building.
The current rent of £14 per sq ft is well below the open market level for a modern building in this location. The next review is scheduled for November, 2002.
The Smurfit Paribas Bank building adjoins the premises of the bank officials' association. The bank complex also includes four apartments in a self contained adjoining Georgian building and 20 basement car spaces.
Edmund Douglas of Douglas Newman Good advised the bank officials on the purchase of the building, which is located close to the Department of Foreign Affairs.
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