Mod­ernised of­fice build­ing in Dublin 4 goes on sale for €24.5m

Newly-named Two Hadding­ton Build­ings leased to Ja­panese advertising agency Prop­erty orig­i­nally formed part of Hiber­nian In­surance head­quar­ters

The Irish Times - Business - - BUSINESS COMMERCIAL PROPERTY - JACK FA­GAN Com­mer­cial Prop­erty Ed­i­tor

A newly refurbished of­fice build­ing to be rented by a Ja­panese advertising and pub­lic re­la­tions firm on Hadding­ton Road in Dublin 4 is ex­pected to be of in­ter­est to Ir­ish and over­seas funds when it is of­fered for sale from to­day at more than €24.5 mil­lion. Sell­ing agents Sav­ills and HWBC said the in­vest­ment will show a yield of 5.5 per cent and a cap­i­tal value of €860/sq ft.

The newly named Two Hadding­ton Build­ings orig­i­nally formed part of the Hiber­nian In­surance Com­pany’s three head­quar­ters build­ings, with an over­all floor area of 10,497sq m (113,000sq ft), at Hadding­ton Road and Percy Place.

The build­ings were bought at the height of the prop­erty boom in 2006 by Kil­dare busi­ness­man Gerry Con­lon. The in­vest­ments were back in the news in 2014 when they fig­ured in the Project Spring loan book as­so­ci­ated with Mr Con­lon, which was bought by Deutsche Bank.

The bank has funded a comprehensive up­grad­ing of Two Hadding­ton Build­ings, in­stalling the latest elec­tri­cal and air con­di­tion­ing sys­tems as well as new show­ers, chang­ing rooms and bi­cy­cle bays. The five-storey head­quar­ters-style block ex­tends to 2,637sq m (28,385sq ft) and comes with 11 sur­face car-park­ing spa­ces ac­cessed from Percy Place.

10-year lease

The block has just been let to Dentsu Aegis Net­work, a sub­sidiary of Ja­panese advertising and pub­lic re­la­tions com­pany Dentsu, which has signed a 10-year lease at an ini­tial rent of €516/sq m (€48/sq ft). The rent roll will be more than €1.4 mil­lion. Dentsu is cur­rently fit­ting out the newly refurbished build­ing to ac­com­mo­date about 130 staff.

Sav­ills and HWBC have also re­cently launched a mar­ket­ing cam­paign to let Three Hadding­ton Build­ings, a head­quar­ters-style block with a floor ar­eas of 1,860sq m (20,020sq ft) over four lev­els, which are cur­rently be­ing mod­ernised. The joint agents are quot­ing €560/sq m (€52/sq ft) and €4,000 for each of the 14 park­ing spa­ces. The build­ing is to be ready to move into next sum­mer.

The own­ers also in­tend to upgrade

Two Hadding­ton Roadis ex­pected to be of in­ter­est to Ir­ish and over­seas funds.

the 3,900sq m (42,000sq ft) of space in One Hadding­ton Build­ings in 2018.

Roisin Raf­ferty of Sav­ills said the sale of Two Hadding­ton Build­ings is an ex­cel­lent op­por­tu­nity to ac­quire a blue chip in­vest­ment in a mar­ket with a di­min­ish­ing sup­ply of good qual­ity of­fice space. Pat Campion of HWBC said the qual­ity of the covenant to­gether with a 10-year in­come cer­tainty of­fers a se­cure of­fice in­vest­ment in a pres­ti­gious lo­ca­tion.

No 3 Park­more West In­dus­trial Es­tate is close to Gal­way city, with di­rect ac­cess to the Dublin and Lim­er­ick roads.

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