Thursday 15 November 2018

Big corporates to join AIB in race for space at Eir's Dublin HQ

Exterior of No 1 Heuston South Quarter (HSQ)
Exterior of No 1 Heuston South Quarter (HSQ)
One of the offices in the building
Feature central atrium
Ronald Quinlan

Ronald Quinlan

The arrival of Block 1 at Eir's Dublin headquarters at Heuston South Quarter (HSQ) to the rental market is expected to attract significant interest from large corporates seeking modern grade A office accommodation within striking distance of Dublin city centre.

Ian Campbell of agent GVA Donal O'Buachalla, is quoting a rent of €430.56 per sq m (€40 per sq ft) for space at the Grade A office building, which is now available to let either in its entirety or sub-let on a floor-by-floor basis to accommodate various medium-sized requirements.

While Eir's lease on No 1 HSQ isn't due to expire until 2033, the company has instructed Campbell to sub-let a total of 14,856 sq m (159,910 sq ft) at the premises. Separately, Savills is advising Eir on its plans to vacate Block 2 at HSQ to make way for the imminent arrival of AIB as tenants.

The State-owned bank has agreed a rent of €376 per sq m (€35 per sq ft) for the building which has a floor area of 5,202 sq m (56,000 sq ft). AIB's decision to move to the Kilmainham scheme follows a protracted negotiation process. As the Irish Independent reported last April, the bank had been on the verge of signing up for the HSQ offices in March, but withdrew after the building's new owners looked to renegotiate certain aspects of the agreement.

One of the offices in the building
One of the offices in the building

The movement of AIB's personnel to HSQ, Central Park in Leopardstown and to the bank's new corporate headquarters at No 10 Molesworth Street clears the way for the redevelopment of the AIB Bank Centre in Ballsbridge as a new EMEA headquarters for Facebook.

The social media giant is reportedly working on plans for a 700,000 sq ft campus, capable of accommodating 5,000 employees. To achieve this, the company is said to be looking to secure the 450,000 sq ft AIB occupies, as well as 325,000 sq ft of office space being developed by Johnny Ronan's Ronan Group Real Estate (RGRE).

Eir's decision to sublet the HSQ scheme meanwhile comes just four months after the property was sold by US fund Northwood Investment Corporation in a €176m off-market deal to a purchaser linked to CK Hutchison Holdings, controlled by Li Ka-shing, Hong Kong's richest man. CK is the parent company of Three mobile, a rival phone company to Eir.

No 1 HSQ is a modern, fully-fitted HQ building. Its typical floor plate is 1,928 sq m (20,753 sq ft) on levels 1-5, with a larger ground floor and smaller floors of 359 sq m (3,864 sq ft) and 231 sq m (2,486 sq ft) on levels 7 and 8. The property comprises open-plan offices, meeting rooms, a large executive boardroom and break-out spaces. There is also town hall space, two interconnecting auditoriums, a restaurant and penthouse café. The property has 149 parking spaces which are also available to rent for €2,500 per annum.

Feature central atrium
Feature central atrium

Ian Campbell says: "This is a unique opportunity for an occupier to get a fully fitted, energy efficient, HQ building beside excellent transport links".

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