Monday 17 December 2018

AIB abandons deal for offices 'over rent'

AIB is understood to have walked away from a potential deal to lease space for hundreds of its workers at the Heuston South Quarter (HSQ) office campus, close to Dublin city centre. (stock image)
AIB is understood to have walked away from a potential deal to lease space for hundreds of its workers at the Heuston South Quarter (HSQ) office campus, close to Dublin city centre. (stock image)
Donal O'Donovan

Donal O'Donovan

AIB is understood to have walked away from a potential deal to lease space for hundreds of its workers at the Heuston South Quarter (HSQ) office campus, close to Dublin city centre.

The Irish Independent has learned the State-owned bank had been close to signing an agreement for offices at the Kilmainham scheme, before withdrawing from negotiations two weeks ago.

The decision not to proceed is understood to have been prompted by an effort by HSQ's owners to increase the rent.

Asked for a comment on the matter, a spokesman for AIB said: "As part of normal operations, we continually review our property options.

"In 2017 we announced two new locations for AIB in Dublin; Central Park in Leopardstown, which will be ready in 2018, and 10 Molesworth Street, in Dublin 2, which will be ready in 2019. No other property agreements have been signed concerning our Dublin estate."

The spokesman declined to comment on HSQ. The bank's adviser on the potential deal, JLL, did not return calls seeking comment.

AIB's need for additional space is a result of its decision to move out of its headquarters in Ballsbridge. That move will free up the AIB Bankcentre site for redevelopment as a new EMEA headquarters for Facebook.

The social media giant is reportedly working on plans for a 700,000 square foot campus on the Dublin 4 site, capable of accommodating 5,000 employees.

To achieve this, the company is said to be looking to secure the 450,000 square feet AIB occupies, as well as an additional 325,000 square feet of office space being developed by Johnny Ronan's Ronan Group Real Estate.

Irish Independent

Business Newsletter

Read the leading stories from the world of Business.

Also in Business