IPUT plc has completed the acquisition of Gardner House, Dublin 2 for €63m in an off-market transaction. The 7,000 sq m (75,600 sq ft) office building which has planning permission for a 4,000 sq m extension adjoins existing IPUT holdings at Wilton Park House and is currently occupied by LinkedIn. The acquisition consolidates the Fund’s ownership in this substantial central Dublin block which also includes Fitzwilton House (to be redeveloped as One Wilton) and a block of apartments on Lad Lane.
IPUT plc, Chief Executive Officer, Niall Gaffney, commented:
“We are delighted with the opportunity to take Gardner House back into the Wilton Estate having sold the asset in 2003 for €83 million. The acquisition has allowed The Fund to take full control over the entire Wilton Estate and complete the assembly of an entire Dublin city block capable of accommodating up to 600,000 sq ft of office space.
We now intend to masterplan the entire Wilton Estate, centred around a new public realm in Wilton Park, with the first phase of our redevelopment due to start in Q1 2018, with the construction of 150,000 sq ft of offices at One Wilton.”
IPUT plc announces that it has pre-let the entire of 10 Molesworth Street to leading Irish financial services group Allied Irish Banks plc (‘AIB’ plc). The 115,000 sq. ft. (10,680 sq. m.) landmark office building is located at the heart of Dublin’s commercial and government quarter and is due for completion in Q1 2018.
IPUT plc, Chief Executive, Niall Gaffney, commented: “We are delighted to welcome AIB plc to 10 Molesworth Street and to the IPUT portfolio. The completion of this major letting to AIB means we have now fully pre-let all of our development projects, bringing our total lettings for the year to date 2017 to 400,000 sq. ft, generating €16m in new rent for our shareholders in 2017. We designed 10 Molesworth Street to reach the highest possible standards of sustainability and it will be the first newly constructed office building in Ireland to achieve platinum accreditation through the LEED rating system. We take a long-term approach to investment and this strategy is reflected in the selective redevelopment of our properties. As is evident from the successful completion and leasing of 10 Molesworth Street, this form of investment both enhances the quality of our building stock and regenerates our rental income for the longer term.”
The building, located on the corner of Molesworth Street and South Frederick Street, has been designed by leading Architects, Henry J Lyons to reflect the rich heritage of the surrounding area and will be finished using handmade Coleford Brick, Portland Stone and full height, floor-to-ceiling windows incorporating finely honed stone fins.
IPUT acquired the original building in March 2013 for €18m and received planning permission to redevelop the space in 2014. The full redevelopment of the site commenced in 2016 and has been managed by IPUT’s in house development team. With a final construction cost of €45m, this is the largest redevelopment project undertaken by IPUT. Upon completion in early 2018 the building will deliver an income yield on cost for the fund of c.11% and a profit on cost of 129%.
Knight Frank and JLL handled the letting for IPUT plc; AIB plc was advised by Cushman & Wakefield.
IPUT plc announces that leading Irish law firm, Ronan Daly Jermyn, will join the Food Safety Authority of Ireland at ‘The Exchange’ in Dublin’s International Financial Services Centre (IFSC). ‘The Exchange’, which is being forward funded by IPUT plc, is the first new office development within Dublin’s IFSC since 2003 and is due for completion in October 2017.
In Q2 the Food Safety Authority of Ireland were announced as the first tenant to take space at The Exchange – agreeing a deal to take 19,041 sq. ft. across the first floor. A deal has now been concluded with Ronan Daly Jermyn to pre-let 6,781 square feet of space on the ground floor of the six-storey 105,000 square foot office building. Ronan Daly Jermyn are entering a 20 year lease, which includes a break option after 12 years, at a rent of €50 per square foot.
Named 2017 Law Firm of the Year at the Irish Law Awards, Ronan Daly Jermyn is a top 10 Irish law firm, with offices in Cork, Dublin, Galway and London, and a staff of more than 230.
Commenting on behalf of IPUT plc, Head of Investment Michael Clarke said: “The leasing of The Exchange is progressing on schedule and we are very pleased to be able to include another top tier Irish Law Firm as an occupier within the IPUT portfolio.”
“This is an exciting time for Ronan Daly Jermyn” said Richard Martin, Managing Partner of Ronan Daly Jermyn. “The new, larger space affords the firm further facilities for growth as the firm continues to expand its offering across its offices in Dublin, Cork and Galway.” He continued, “we were fortunate to find such an exceptional space right at the heart of our preferred location. This brand new building will provide our people, and our clients, with a bespoke, state of the art space. It brings the total square footage occupied by Ronan Daly Jermyn across its three offices to over 40,000 sq ft from which the Ronan Daly Jermyn team serves a wide range of national and multinational clients.”
IPUT is the largest domestic owner of prime office buildings in Dublin’s central business district. IPUT has a net asset value of €2.1bn and office’s comprise 65% of the portfolio. The Fund controls over 2 million sq ft of prime office space in Dublin occupied by leading domestic and international companies. Legal firms account for almost 13% of our rental income and include leading Irish Law firms; A&L Goodbody, Beauchamps, Dillon Eustace, Eversheds, McCann Fitzgerald and now Ronan Daly Jermyn.