McCONNELL'S ADVERTISING Group, which is merging with Irish-owned rival AFA O'Meara, is paying annual rent of €642,015 to companies controlled by developers Bernard McNamara and Jerry O'Reilly for its offices at Barrow Street in Dublin, new filings reveal.
In addition, McConnells is paying €49,000 a year plus value added tax (VAT) for the use of 14 car parking spaces at the building. That equates to €3,500 per space annually before VAT. The advertising group is also paying €100 per year for the use of storage at the office complex and €100 for the use of external areas. Details about the rent payments emerged in documents filed recently in the Companies Office by AFA Property Holdings Ltd, which indicate a mortgage has been secured with Ulster Bank involving the office properties occupied by McConnells and AFA.
McConnells occupies space on two floors of Block 1, Grand Mill Quay, on Barrow Street, near Ringsend. The 25-year lease began on September 1st last year and rents are reviewable every five years.
AFA O'Meara staff will transfer there once the merger has been completed. AFA is planning to knock down its premises at James Place in Dublin in May, having received planning permission to develop the site as a 20,000sq ft office block. Property analysts estimate this site could be worth more than €15 million when developed.
The deal to combine the two advertising agencies is effectively a reverse takeover of McConnells by AFA, whose largest shareholder is Stuart Fogarty. McConnell's four biggest shareholders are selling their stock as part of the deal.
The agencies had combined profits of €4 million from turnover of €89 million in 2007 and the merger will make it the biggest ad firm in Ireland. The new entity will be called McConnells, led by AFA managing director Damian Bell.
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