The Dublin office market has received a badly needed boost with the pre-letting of over 60 per cent of the space in blocks 1 and 2 of the Shelbourne Buildings on Shelbourne Road in Dublin 4. The 5,000sq m (53,820sq ft) complex is being modernised by owners Irish Property Unit Trust.

Technology giant IBM is relocating its Irish HQ to the complex where it is likely to be paying over €322 per sq m (€30 per ft) for 1,900sq m (20,451sq ft) under a 10-year lease with the now standard break in year five. Most of the high quality refurbishment programme is due to be completed in March.

Pre-letting

In addition to the IBM deal, IPUT has also pre-let two further floors to bring overall lettings to over 60 per cent of the entire space. Letting agent BNP Paribas Real Estate is also reporting a high level of inquiries for the remaining space which will be ready for occupation in April. The accommodation is flexible with floor plates from 200 to 760sq m (2,152/8,180sq ft).

Michael Clarke, investment manager with IPUT, said that not only were they pleased to have pre-let so much of the space but they were particularly happy to have another prestigious occupier within their office portfolio. On completion of the upgrading of the Shelbourne Buildings the fund would have 5,000sq m (53,820sq ft) of top quality office accommodation with the prospect of rental and capital growth.

IPUT is understood to have negotiated a significant surrender payment with the previous occupier, Progress Software, which was only occupying a small section of the buildings.

This is the second substantial office refurbishment project undertaken by IPUT in the past 12 months. In 2012 the fund refurbished its HQ at 2 Hume Street to provide 1,600sq m (17,222sq ft) of top class accommodation. All the space has since been let to a range of tenants including Emirates Airlines, Novo Nordisk Pharmaceuticals, IP Navigation and Von Essen Consulting.