Hoteliers Paul and Charles O’Callaghan have secured flexible workspace provider Iconic Offices as occupier for Sandwith Court on Sandwith Street Upper in Dublin’s south city centre. The building, which served for many years as the Dublin headquarters of KBC Bank before its exit from the Irish market, will now be operated by Iconic as a flexible workspace. Willie Dowling of Colliers negotiated the letting of the 65,000 sq ft property to Iconic Offices on behalf of the landlord, Sandwith Property Unlimited Company.
Commenting on the deal, Dowling said: “This transaction highlights the continued strength of demand for premium, flexible office accommodation and the appeal of Dublin 2 as a core business location. Iconic Offices is a best-in-class operator led by entrepreneur Joe McGinley, and this agreement represents a strategic addition to their growing portfolio.”
Dowling noted the O’Callaghans’ response to shifting office market dynamics, which increasingly see landlords entering structured partnership arrangements with flexible workspace operators, including shared participation in rental returns. The O’Callaghans’ deal with Iconic Offices comes just four months after their boutique hotel group, The O’Callaghan Collection, paid €12.5 million for Montague Court, a 1970s office building off Harcourt Street primed for redevelopment. The price paid represented a discount of about 9 per cent on the €13.2 million which had been guided for the property when it was brought to the market by agent HWBC last October.
While the O’Callaghans have yet to formulate their plans for Montague Court, the property will provide them with the benefit of rental income while they assess the options for its redevelopment.
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The building is fully let until at least 2028 and is generating about €1.1245 million in annual rental income from a strong tenant line-up that includes the Department of Justice and Romeril Forensic Engineers. In the case of the former, the lease has a further 4½ years to expiry.
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