Nationwide's HQ for Spencer Dock

The building society apparently paid the quoted rent of €532 per sq m (€49.50 per sq ft) but will be able to avail of a rent-free period of about six months

THE BRITISH-BASED Nationwide Building Society has chosen an office block in Dublin’s Spencer Dock as its new Irish headquarters following its decision to expand its operation into this country.

It is expected to compete with local building societies and banks on home mortgages and credit cards.

Nationwide’s arrival has to some extent been overshadowed by the credit crisis and the turmoil in the banking sector which looks like staggering on for some considerable time.

There was intense competition among many Dublin office developers to attract Nationwide because of its reputation as one of the biggest building societies in the world with 15 million customers.

Nationwide has completed legal contracts to occupy 650sq m (7,000sq ft) at penthouse level in 3 Spencer Dock adjacent to the Central Bank and the Financial Services Authority which has already leased 5,515sq m (59,364sq ft) of overspill space from its head office in Dame Street. Nationwide’s 25-year lease provides a break option in year 15.

The tenant apparently paid the quoted rent of €532 per sq m (€49.50 per sq ft) but will be able to avail of a rent-free period of about six months.

Treasury Holdings plan to let the remaining six floors, with floor areas from 593 to 935sq m (6,383 to 10,064sq ft) on a floor-by-floor basis at around the same rent levels.

Having both the Central Bank and Nationwide on board should help to attract other high profile tenants, according to letting agent HT Meagher O’Reilly.

The 11,157sq m (120,093sq ft) block was forward-funded by Anglo Irish Assurance Company over two years ago and developed by Treasury Holdings.

Its managing director, John Bruder, said that Nationwide’s arrival was a “great vote of confidence in Spencer Dock and the Irish financial sector, particularly in these challenging times”.

Accountants PwC and Fortis Bank are based in Spencer Dock and it will also be the venue for the National Conference Centre which is due to open in August 2010. The Luas will shortly service Spencer Dock and other developments in the north docklands.

Carl Gandy of Nationwide Building Society said they were very excited about their expansion strategy for Ireland. Spencer Dock was an ideal location for the headquarters because of its accessibility and high quality amenities.

Jim O’Reilly of letting agent HT Meagher O’Reilly said that, despite the tough conditions in the office market, they were confident that high quality developments, like Spencer Dock, would continue to attract top tenants.

Nick Coveney of Colliers Jackson-Stops advised Nationwide.

Meanwhile there is an equally intensive battle going on between developers in the south Dublin docklands area to attract the operator of the social internet site Facebook. The firm has shortlisted five vacant buildings through its agent DTZ Sherry FitzGerald and is due to announce before very long where it will be renting 929sq m (10,000sq ft). It plans to hire a staff of 70.