Norwegian state-owned oil company Statoil is negotiating to lease a substantial part of the first phase of an office development at the G & T Crampton site in Shelbourne Road, Ballsbridge, Dublin 4. The company is believed to have agreed terms at almost £18 per square foot for 27,000 square feet, which is due to be completed by the end of the year. The lease is likely to include a break clause, possibly in the 10th or 15th year. The ESB Superannuation Fund is funding the two blocks under construction which will have a total of 54,500 square feet. Construction work has also begun on a third block of 41,500 square feet, which is to be retained by Crampton.
Statoil's Irish headquarters are in Deans Grange. The company has apparently been anxious to move to a more prestigious location since taking over most of Jet's petrol service stations.
If the Statoil letting goes ahead, it will provide a strong endorsement of the new policies being pursued by the ESB fund to reduce its exposure in the older office market and divert funds into new blocks. The fund has committed about £12.5 million to the new Ballsbridge offices.
Neither Roland O'Connell of Hamilton Osborne King, who is advising Statoil, nor Peter Stapleton, who is acting for the ESB fund, would confirm that they are close to agreement on the letting.
A short distance away at Merrion Road in Ballsbridge, Ryde Developments is to resume construction work on its Sweepstakes office scheme after a lapse of five years. Development of a 60,000-square-foot block is expected to be completed within 12 months because the foundations have already been laid. Pat McCormack of agents Palmer McCormack said they were involved in talks which, if successful, would mean that only a small proportion of the building would be available for letting. His agency is quoting a rent of £20 and feels it is now the right time to proceed with the block. Ryde has planning permission to provide a further 60,000 square feet on the site opposite the RDS.
The company leased the first block of 38,000 to Eagle Star in 1992 at a rent of £16.60 per square foot. The investment was subsequently bought by Telecom Eireann Pension Fund.
Ryde originally paid £6.4 million for the six-acre Sweepstakes site in 1988 and later sold on half of it to Cosgrave Homes for £4.8 million.
