Tetrarch poised for €7.5m first phase at Millennium Park

Irish property investment group Tetrarch Capital will shortly seek permission for a multimillion-euro residential and commercial development at Millennium Park in Co Kildare, having recently acquired 336 acres of the business park from the National Asset Management Agency for about €36 million.

The Irish Times has learned Tetrarch will apply for permission in the next two months to build up to 50,000sq feet of office space in a project costing about €7.5 million. This will be the first phase of commercial development. It will be followed in early 2016 by an application for more than 400 housing units on this prime development site, located close to Naas town and just 17 miles from Dublin's city centre.

In addition, planning permission exists to construct a new petrol station and a large forecourt, and Tetrarch is expected to begin this before the end of the year. Millennium Park will also be home to a large new secondary school, with planning likely to be sought this year.

Tender process

Tetrarch secured the purchase of Millennium Park following a tender process run for Nama by real estate agent CRBE. It is is understood the investment group, led by Michael McElligott, paid just above the €35 million asking price. At the height of the boom, Millennium Park cost €312 million for 417 acres. Funding for the project was made available to developers Gerry Prendergast,

Tom Considine

and

Paddy Sweeney

by

AIB

, Irish Nationwide and

Anglo Irish Bank

. These loans were subsequently transferred to Nama at a discount.

Under the Naas Development Plan 2011-2017 some 21 acres is set aside for new residential, 103 acres for agricultural use and 166 acres for enterprise and employment.

Some 40.75 acres of Millennium Park has already been developed while the remaining land benefits from a variety of zonings, including in-fill residential, new residential, urban village, enterprise and employment. Six buildings owned by Tetrarch extend to about 152,373sq ft and produce overall income of €1.62 million a year. Some 94 per cent of accommodation is occupied.

Current occupiers include AIB, German retailer Lidl, the HSE, Horse Sport Ireland, healthcare group Sodexo and Cocoon Childcare.

Innovation centre

The park also includes

Kerry Group

, which is spending €100 million on a global technology and innovation centre that will employ 900 when fully commissioned next year. The centre for scientific research and product development is located on a 28-acre site sold to the Kerry Group at about €180,000 an acre. Some 125 acres are zoned and available for commercial and office development within the park.

More than €50 million has already been invested in infrastructure in Millennium Park and Tetrarch sees significant long-term potential. The business park is expected to appeal to IDA clients and foreign direct investors, given its easy access Dublin Airport.

Tetrarch is hoping to capitalise on a lack of supply in the Dublin office market, including the suburbs. Increasing demand driven by the recovery has led to rising rents in secondary and suburban locations such as Sandyford. The company believes this demand will flow to Naas. Millennium Park is the latest asset in Ireland acquired by Tetrarch. It is probably best known for its hotel ownership, which includes the Powerscourt Hotel in Enniskerry, the Mount Juliet resort in Kilkenny and the Marker in Dublin's docklands.