It was announced today that one of Dublin’s most recognised buildings is coming up for sale, with an asking price of €20million.
The current Irish Department of Justice Headquarters, which was originally the Centenary Church of Ireland, immediately adjacent to the KPMG Headquarters on St Stephen’s Green, is being offered for sale through Savills, on behalf of the investment management group, SW3 Capital.
In its present state No. 94 St Stephen’s Green comprises a landmark office headquarters with pillared listed façade and a modern office extension to the rear. The four-storey over basement office building benefits from a prestigious entrance hallway and reception, which would have greeted the Centenary Church congregation in the mid 1800’s. Also included in the sale is a Townhouse Residence immediately adjacent, which fronts onto St Stephen’s Green.
Part of the original structure dates back as far as 1841, when the Centenary Church purchased the subject site for their Irish Headquarters. It is documented that on Sunday the 22nd of December 1968, the church burnt down, bringing to an end a 127 year association which the church had with the property on St Stephen’s Green.
The site was subsequently sold by the church and it is understood that the money raised from the sale and fire insurance helped facilitate the purchase of many of the Methodist Centenary linked facilities in Dublin today. One such facility is Wesley House in Leeson Park, Dublin 6.
The property, including the Townhouse is let to The Commissioners of Public Works in Ireland under two co-terminus leases and is currently occupied by the Irish Department of Justice. The current annual rent being paid by the state is €1,020,000, which can be analysed as approximately €45.85 per sq ft. The asking price of €20 million reflects a current initial yield of close to 5% and a capital value of €899 per sq ft.
A purchaser will have the ability to consider a substantial upgrade of both the office headquarters and Townhouse Residence in June 2018, upon expiry of the existing leases.
Savills believe the prospect of delivering a Grade A office building and Townhouse with associated prestige, in this location will certainly be attractive to many investor types. The property consultants believe there is also the perspective of an owner occupier, Brexit fall-out tenant or international embassy viewing this as a once in a Generation opportunity to own their own headquarters and residence on St Stephen’s Green.
Commenting on the opportunity, Dessie Kilkenny of Savills said, "This is certainly one of the most exciting asset management opportunities, in a truly prime district, to have ever been offered for sale in Ireland. The benefit of strong state income, coupled with the prospects of an upgrade project in the near future are extremely rare in this type of location. I expect the prestige and history associated with the property will draw an array of investor types, owner occupiers and developers to consider the opportunity."
Source: www.businessworld.ie
