Friday 24 January 2020

Barclays Bank agrees 20-year lease in Dublin 2

Dublin's One Molesworth Street building, a mix of office and retail
Dublin's One Molesworth Street building, a mix of office and retail
Ellie Donnelly

Ellie Donnelly

Green REIT has signed an agreement with Barclays Bank Ireland to lease 3,437 sq m at its flagship development, One Molesworth street in Dublin 2.

The news comes following confirmation last month that Barclays is in talks with Irish regulators to expand here in order to continue servicing customers in the EU after Brexit.

The letting will cover two and a half floors of office space for a duration of 20 years, with a tenant break option at the end of year 12. Annual rent payable by Barclays will be €2.35m or €670 per sq m, one of the strongest rents agreed in Dublin since 2007.

Barclays will also have the option to rent a further half- floor on the third floor of the building. Following the letting to Barclays of 55pc of the total office space, the remaining office space to be let comprises of the balance of the third floor (subject to the Barclays option above), and the fourth and fifth floors totalling 2,900 sq m.

The remainder of the building, including 1,672 sq m of retail space at ground and lower ground level will be ready for fit-out in the latter half of 2017.

The deal is seen as a significant boost for Green REIT as the letting will further de-risk its development pipeline and allows early crystallisation of development profits.

Colm Lauder of Goodbody said that he expects the One Molesworth scheme could add €34m in development profits, ahead of earlier expectations that this development would deliver €29m.

The move by Barclays may end up coinciding with the opening of a branch of The Ivy restaurant, which is now in the hands of Caprice Holdings, on the ground floor of One Molesworth street.

The London institution is rumoured to also have agreed to lease 10,000 sq ft of ground floor retail space of the building, although this is understood to be planning dependent.

While the ground floor of the building is currently built for retail space, an application was submitted to Dublin City Council last month requesting a change to restaurant use.

Last month a spokesperson for Barclays said that the bank intended to "utilise an existing licensed EU-based bank subsidiary to continue passported activity".

"Barclays Bank Ireland....provides a natural base and we are engaging with our regulators in discussions to extend its activities," it added.

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