ONE of two large office blocks under construction at the Adelphi Centre in Dun Laoghaire has been pre-sold to the giant telecommunications group, Ericsson, for around £4 million. The 26,000 square-feet building will be the third to be occupied by the company at the Adelphi Centre.
The acquisition comes in the same week as the ESB Pension Fund is preparing to offer two other blocks rented by Ericsson for a sale at a price of more than £4.8 million. The fund has been cutting back on its exposure in the office market during the past two years and after failing to find a prime retail investment in the city, it may now have to settle for a new office development.
Ericsson is to use its new high-spec block as a training centre for its fast growing international business when it is completed in December. Next year the first batch of more than 2,000 staff from around the world are to undergo an intensive training course at the Dun Laoghaire centre.
Ericsson is believed to have looked at four different office locations before deciding to remain at the Adelphi Centre. The availability of the DART, the much improved business climate in Dun Laoghaire and the competitive design-and-build package offered by the Adelphi Centre persuaded Ericsson to remain there.
The two 26,000 square-feet blocks under construction will complete the development at the Adelphi Centre. The second 26,000 square-feet block, being built on a speculative basis, is to have 35 car-parking spaces and will be ready for occupation next January. Dillon Associates arc the letting agents.
The two other blocks, with a combined space of 33,000 square feet, are to be offered for sale by Shannon and Co as soon as new rents are fixed. The two adjoining building arc let under a single lease at £350,000 per annum - the equivalent of £10 per square foot and £500 for each of the 40 car-parking spaces.
The ESB has sought a revised rent of £12.30 per square foot and £750 for car-parking spaces, which would increase the rent roll to £438,500. An arbitrator is due to rule on the issue in the immediate future. Ericsson's 35-year lease of the two blocks dates from 1990. The company has an option to break the lease in 2006.
The ESB also owns a third block of 16,235 square feet at the centre. This is occupied by SmithKline Beecham on a 35-year lease at £12.30 per square foot and £500 for car-parking spaces.
Equity Bank is providing funding for the two latest blocks at the Adelphi Centre and also for a second development, known as Century Court, in Dun Laoghaire.
