Sunday 22 April 2018

Twitter set for Cumberland move

A rendering of Cumberland House after it is refurbished in 2016.
A rendering of Cumberland House after it is refurbished in 2016.
Peter Flanagan

Peter Flanagan

Twitter is to move its European Headquarters to Cumberland House in central Dublin.

In a statement, the property firm Hibernia REIT said Twitter would move to the building after a refurbishment in the second half of next year.

The statement confirms a Sunday Independent report last month that Twitter had lined up a deal for Cumberland House.

Hibernia acquired the 112,000 sq ft Cumberland House for €49m last March. The property also has 213 car parking spaces on a 1.6 acre site. As part of the agreement with Twitter, Hibernia will refurbish the entire building at a cost of up to €27m ahead of expected lease commencement next year.

Twitter will occupy all of the office accommodation in Cumberland House, with the exception of the fifth and sixth floors, and will take 140 car parking spaces on a 20 year lease, with tenant-only break options after 12 and 15 years. It will pay initial rent of €4.6m per annum, equating to an average of €50 per sq. ft. for the office space.

Hibernia CEO Kevin Nowlan commented: "We are delighted to have agreed terms with Twitter for the pre-lease of the majority of Cumberland House. The building is excellently located in the heart of Dublin between Pearse Street Railway Station and Merrion Square and once refurbished will offer over 112,000 sq. ft. of first class office space with the potential of further expansion in future. Once fully let we expect the building to generate a yield on cost of at least 8pc."

Cumberland House is one of the biggest office properties available in Dublin. Hibernia REIT bought the 1970s era block from the Bennett family last year. At the time of the deal it had been expected that the property would be quickly redeveloped. The development plans had raised the prospect of a new block with capacity for as much as 250,000 sq ft of office space being built on the site.

The micro-blogging site has been based in the Academy Building for some time but has outgrown that space and now has multiple locations across the capital.

The company has been looking for a new home for its Europe, Middle East and Africa (EMEA) headquarters for more than a year.

At one point it was set to move into the former Fas building on Baggot Street in the city but that deal fell through.

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