Sunday 19 November 2017

McKillen and Zendesk in talks on 55 Charlemont Place

Paddy McKillen Jr and Matt Ryan are in talks to secure Zendesk for 55 Charlemont Place
Paddy McKillen Jr and Matt Ryan are in talks to secure Zendesk for 55 Charlemont Place
Ronald Quinlan

Ronald Quinlan

Paddy McKillen Jr and Matt Ryan are understood to be in talks to secure Zendesk as a tenant for 55 Charlemont Place, the six-storey office block their company, Oakmount, is developing on the banks of the Grand Canal in Dublin.

Discussions between the parties are believed to be at an advanced stage, with an agreement expected to be concluded shortly.

Zendesk, a provider of cloud-based customer service software, established its first Dublin office in late 2012 with two engineers and plans to grow its headcount to 25 by the end of 2013.

The company reached that target a month ahead of schedule before proceeding in the first half of 2014 to more than double its headcount to 52 employees. At that point, Zendesk shifted its operations within Dublin city centre, opening its European data centre at One Grand Parade.

A relatively new development, the building is located almost immediately across the Grand Canal from its next intended offices at Charlemont Place.

Zendesk has been renting almost 1,858 sq m (20,000 sq ft) at One Grand Parade and is understood to have been paying close to the asking rent of €322 per sq m (€30 per sq ft) which had been sought by letting agents, CBRE, at the time the company entered into its tenancy.

Unsurprisingly, the economic recovery, which has taken hold since 2014 and in Dublin particularly, has seen office rents in the city's central business district (CBD) and immediate environs increase significantly.

In the case of 55 Charlemont Place, letting agent Paul Hanly of Knight Frank has been quoting a rent of €613 per square metre (€57 per square foot). The price being negotiated presently by Zendesk remains unclear, however.

Designed by Pascal Mahoney of Mahoney Architecture, 55 Charlemont Place will have a floor area of 5,735 sq m (57,855 sq ft) upon completion and will carry an LEED Gold and BER A3 rating. Inside, the property's reception area is to feature a world-class art collection of work by both Irish and international artists, while outside the building's public plaza will boast a feature sculpture, natural stone paving and seating.

McKillen and Ryan's Oakmount has been particularly active in the Dublin market in recent times.

Apart from 55 Charlemont Place, the company is also progressing plans for the development of a number of office, hospitality and residential schemes.

Among the company's current projects are: the construction of 60-bedroom hotel immediately adjacent to Ballymore's 93,000 sq m (1m sq ft) Dublin Landings mixed-use development and the Central Bank's new headquarters in the Dublin docklands; the delivery of 2,506 sq m (27,000 sq ft) of Grade A office space, apartments and retail units within a former distillery building and adjoining offices at 26 New Row South; and the redevelopment as a hotel of the Howl at the Moon pub premises on Dublin's Lower Mount Street.

Elsehwere in Dublin 2, Oakmount is expected to open a pub and cocktail bar at the former Aungier House on Aungier Street.

The company's plans for the building reportedly include a €1m refurbishment and extension of the derelict period structure to incorporate a traditional-style pub at ground floor, with a kitchen and cocktail bars on the upper floors. A roof terrace with the capacity to accommodate about 20 people is also understood to form part of the plans.

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