Ireland's most valuable office building comes to market

Savills and CBRE have launched the sales process for what they describe as the most valuable office building in Ireland.

One Spencer Dock, the Dublin headquarters of professional services firm PwC, is on the market with a guide price of €240 mln, reflecting a net initial yield of 4.7%.

The entire nine-story-over-basement property is located in the city's financial services district and consists of three interconnecting blocks and extends to 21,054 m2 (226,624 sq ft). Block C1 and C2 incorporate full height atria and are linked via a glazed bridge to Block C3. The guide price also equates to capital value of €1,059 per square feet of leasable area. There are also 100 basement parking spaces.

One Spencer Dock was developed by Dublin-based Treasury Holdings in 2007 and designed by Scott Tallon Walker Architects.

Long lease
The office accommodation is 100% let to PwC under 3 separate 25-year leases dating from April 2007. Savills said that the unexpired term certain of over 16.5 years 'is unsurpassed in this cycle'. The total rent is €11.8 mln per annum. The leases incorporate upward only rent reviews every 5 years with the next review in April 2017. The investment offers strong reversionary potential with a current passing rent of €50 per sq ft.

PwC employs 1,800 people in One Spencer Dock and a further 1,000 employees are based throughout Ireland.

Development zone
Spencer Dock and the wider docklands area is gearing up for the next phase of development which will see new office, retail and residential developments transforming the skyline. This will in part come from the future development of the remaining Spencer Dock site, the Project Wave site, City Quay and the Exo Building adjacent the 3 Arena.

Fergus O’Farrell, Director, Savills Ireland commented, 'As a core investment, this is unsurpassed even in an international context. With over 16 years unexpired on the lease term to an internationally recognised covenant, incorporating 5 yearly upward only reviews, this is one of the last scale Grade A office blocks with these characteristics remaining in the Dublin market.'