Wednesday 29 March 2017

NAMA hopes to generate €10m from D4 offices

Part of the seven acre Pamarette property with a €10m price tag. It includes the white
Smurfit Kappa buildings at the front of the picture but excludes the red brick offices
Part of the seven acre Pamarette property with a €10m price tag. It includes the white Smurfit Kappa buildings at the front of the picture but excludes the red brick offices

DONAL BUCKLEY Commercial Property Editor

The Government's agency NAMA is hoping a two-storey office building on seven acres in Clonskeagh, Dublin 4, could sell for €10m.

Controlled by the Pamarette consortium, in which developer Paddy Kelly was a member, the 3,291sqm hexagonal offices with dome roofs are currently occupied by Smurfit Kappa which has a little over two years left on its lease. Kelly and his colleagues originally acquired the site for a sum reported to be €25m from the Jefferson Smurfit Group after JSG went private in 2002.

Now agents CB Richard Ellis are asking €10m for the sale of the Beech Hill Road property on the instructions of Savills which NAMA appointed as fixed charge receivers on the basis of Mr Kelly's loans.

The property, which benefits from 70 surface car spaces, is currently let on a nine year, 11 month lease from December 2003 at a passing rent of €500,000. The tenant has signed a deed of renunciation in relation to their landlord and tenant rights which would allow a buyer to acquire vacant possession.

Campus

Ronan Webster of CBRE says the property could appeal to "office occupiers seeking a secure private building in South Dublin, developers and/or investors looking to develop a residential student campus."

Its development potential is reflected in the planning permission which Pamarette achieved in 2009, for a mixed development comprising 18,399sqm of offices, including a science and technology block and 121 apartments.

However that permission was for a larger 10 acre site as Pamarette's plans were based on a joint venture with UCD which included three adjoining acres belonging to the university.

Developer interest in this area of Dublin is reflected in how a 1.25 acre site at the corner of Sandford Road and Eglinton Road with permission for 18 apartments recently went sale agreed.

CBRE had been asking €2.5m or €2m per acre for that property.

Irish Independent

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