Business

German and Australian investors in €40m bid for prime Dublin office

40 Molesworth Street is fully occupied and generating €2.175m in annual rental income

40 Molesworth Street occupies a prime location in Dublin's central business district

Ronald Quinlan
Thu Mar 7 2024 - 17:02

The proposed disposal by State Street Global Advisors of 40 Molesworth Street, a prime office building located in the heart of Dublin’s central business district, is understood to have attracted bids from four international investors.

Australian-headquartered Macquarie Asset Management, and three German investors, namely Deka Immobilien, HIH Real Estate, and MEAG, are said by market sources to have submitted offers earlier this week at levels in and around the €40 million agent Savills had been guiding for the property when it offered it to the market in late January.

The Irish Times understands the vendors had earlier rejected a lesser offer submitted by another party. The investor in question did not partake in this week’s bidding process.

State Street purchased 40 Molesworth Street in 2018 as part of a multimillion-euro asset swap in which it ceded ownership of Deloitte House on Earlsfort Terrace to Irish property company, Iput. Iput had acquired the building for its part, in March 2013 for €8.4 million and spent €13 million transforming it into a modern grade office building with LEED Gold certification and an A3 Ber rating.

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Today, the former home of the European Commission comprises 2,770 sq m (29,820 sq ft) of office space over six floors, along with a ground and basement retail unit extending to over 339 sq m (3,649 sq ft).

The offices are occupied in their entirety by global law firm, DLA Piper who took an assignment in 2021 of the 20-year lease which had been entered into originally by US online retailer Jet.com in 2017 with the building’s previous owner, Iput.

The lease which is due to expire 2037 has a term certain of 12 years and has a headline rent of about €60 per sq ft. Specsavers occupy the retail element of the building, and the property is generating overall rental income of €2.175 million annually.

Ronald Quinlan

Ronald Quinlan

Ronald Quinlan is Property Editor of The Irish Times

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