Capita docks at Grand Canal Square

CAPITA, THE UK’s largest outsourcing group by market capitalisation, is to set up a new Irish headquarters at Grand Canal Square in the south Dublin docklands.

The FTSE 100 company has just agreed rental terms with Chartered Land for 3,948sq m (45,000sq ft) in what is one of the largest office lettings this year. Agent Bannon advised the landlord and Capita acted on its own behalf.

News of the letting comes as three other companies have indicated that they will also be looking for larger office accommodation in the Dublin area.

Airtricity, which has around 500 employees at its Sandyford headquarters, is looking for 6,967sq m (75,000sq ft) in south Dublin. Its search is likely to be concentrated on Sandyford, Leopardstown and Cherrywood.

The pharmaceutical firm Novartis is considering leasing up to 9,300sq m (100,000sq ft) in south Dublin. It also employs 500 people here and has an operation at Beech Hill Office Park in Clonskeagh as well as a manufacturing plant in Ringaskiddy, Co Cork.

The large electrical engineering firm Mercury Engineering, set up by the late Frank Keane and his partner Joe Morgan, is also reported to be looking for additional office space in Dublin.

Capita acquired AIB’s international financial services business last year and has just announced the opening of an office in New York. It has greatly benefited from a stream of government contracts in the UK including the running of the British criminal records bureau and the BBC television licensing.

In Dublin it will be paying a rent of about €322 per sq m (€30 per sq ft) for 2 Grand Canal Square under a 10-year lease without any break clauses. The firm is likely to have secured a rent-free period of over two years in lieu of fit-out costs.

Robbie Hughes, chief executive of Capita Asset Services, said the relocation to Grand Canal Square would allow them to consolidate their diverse businesses to one location and also provide them with the opportunity to continue their strategic growth in Ireland.

Grand Canal Square was designed by the international architect Daniel Libeskind and is rapidly becoming one of the most popular commercial and cultural locations in the city.

Number 2 Grand Canal Square extends to 14,400sq m (155,000sq ft) and is distinguished by sculptured elevations and a spacious full height atrium with a seven-storey wall of letters portraying a passage from James Joyce’s Finnegans Wake. It adjoins the Bord Gáis Energy Theatre.

Bannon is quoting a rent of €376 per sq m (€35 per sq ft) for the remaining 9,847sq m (106,000sq ft) in the development. About 8,082sq m (87,000sq ft) is fitted out to a high specification following a decision by law firm Byrne Wallace to relocate last May to its previous offices on Harcourt Street. These offices include a number of penthouse meeting rooms, individual offices and a fully functional canteen.

Energy costs are 60 per cent lower than in a typical five-year-old building with standard air conditioning.