Friday 30 September 2016

DIT catering college put on the block for up to €20m

Published 02/03/2016 | 02:30

DIT college on Cathal Brugha Street
DIT college on Cathal Brugha Street

Dublin Institute of Technology is seeking between €15m and €20m for its catering college and related property beside O'Connell Street.

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The college, which is set to be moved to the new campus at Grangegorman, will vacate its long-standing base at 21 Cathal Brugha Street at the corner of Marlborough Street.

The property, which will be marketed by agent WK Nowlan, has about 10,000 sq m of space, and can be converted to offices or apartments. The shortage of office space in central Dublin may make this property an attractive one to investors.

The building is yards from O'Connell Street and so will benefit greatly from the extension of the Luas up towards Parnall Square.

That extension is seen as key to making the O'Connell Street area attractive as a work destination to office workers based on the southside of the city.

This is the latest big ticket property in the O'Connell Street area to go up for sale in recent days. The Gresham Hotel, which backs on to the property, formally went on the market last week with a price tag of €80m.

That is expected to be bought by an international investor given the size of the business, although there is expected to be some domestic interest in as well. Among the likely bidders are Irish hotel giant Dalata, as well as former Gresham Hotel chief executive Patrick Coyle.

Perhaps a better guide to the potential sale price of 21 Cathal Brugha Street is Telephone House, a 1970s office block almost opposite the property.

That block, which has a total net floor area of 7,504.1 sq m, is on the market through Knight Frank guiding €11.5m.

The Dublin office market posted a total return of 28pc in 2015, according to a report from BNP Paribas Real Estate and MSCI.

While that number was driven mainly by the docklands as well as Dublin 2, all parts of the city posted double-digit growth.

BNP Paribas Real Estate Ireland head of research Joan Henry is forecasting office rents to increase by 5pc this year 3pc in 2017 as the market stil waits for badly needed new supply.

Irish Independent

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