Friday 20 September 2019

Smurfit Kappa to buy its Irish headquarters from NAMA

Donal O'Donovan

NAMA is understood to have agreed a deal to sell Smurfit Kappa's Irish headquarters to the cardboard box maker.

Smurfit Kappa is currently paying €500,000 per year to rent the premises and is understood to be buying the property for less than the €10m asking price.

NAMA appointed Savills as property receivers for the offices when the 'bad bank' seized a number of properties owned or part-owned by developer Paddy Kelly.

Savills appointed property agents CBRE to sell the property and it was put up for sale with a €10m asking price over the summer.

The site includes a two-storey office building with 70 parking spaces on a seven-acre site in Clonskeagh, Dublin, beside UCD.

Smurfit Kappa's lease is up for renewal in 2015 and planning permission had been obtained for further office and residential development -- though that is now not likely to go ahead.

A source close to the situation told the Irish Independent that the terms of a deal have been agreed but have yet to be completed.

The price agreed is understood to be less than the €10m sought.

The site was bought by a consortium led by Paddy Kelly for around €25m in 2004.

NAMA and Smurfit Kappa declined to comment yesterday.

The property was on the market through property agents CBRE and receivers Savills, who also declined to comment.

NAMA took control of the Clonskeagh property in March 2011 in a wider seizure of properties in Paddy Kelly's empire, which owes the state-owned bank around €1.5bn.

Irish Independent

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