IRISH Intercontinental Bank has agreed terms for the purchase of an office block at Dublin's International Financial Services Centre for more than £8 million. The 21,000-square-foot block, known as 4 George's Dock, will be ready for occupation by the end of the year.
The sale, which is due to be announced later this week, means that the combined space of 46,000 square feet in the adjoining blocks at 3 and 4 George's Dock are no longer available to ABN-Amro, the Dutch bank which owns Riada stockbrokers.
ABN-Amro has been involved in discussions since last April to acquire either the George's Dock buildings or part of the former Sheriff Street sorting office, which is being redeveloped by a rival company headed by Brian Rhatigan.
The Hardwicke-British Land consortium, which is developing George's Dock, had sought between £14 million and £15 million for the two blocks arid apparently refused to drop its price to bring it into line with lower terms being offered by Mr Rhatigan.
The decision to sell part of George's Dock to Irish Intercontinental Bank means ABN-Amro will now either have to settle for Mr Rhatigan's Custom House Plaza scheme or wait for a later block to be built by the consortium. Should the bank opt for the plaza, it will provide an important kick-start for this development, which will have a total of 183,000 square feet of space.
ABN's main Dublin operation is located on St Stephen's Green.
The company has yet to decide whether to move its entire Irish business to the IFSC.
It is understood that the Hardwicke-British Land consortium was unwilling to wait any longer for a decision from ABN-Amro and agreed terms with Irish Inter-continental after it pulled out of negotiations to lease Stack B, a self-contained office block of 14,000 square feet owned by Denis O'Brien, of the radio station 98FM.
Irish Intercontinental rents about 4,000 square feet in Dermot Desmond's South Block in the IFSC. The bank, which is owned by the Belgian Kredietbank (75 per cent) and Irish Life (25 per cent), will be able to write off 100 per cent of the construction cost of the building against its tax liabilities. The bank reported profits of £14.7 million for 1994.
it is unlikely to need the entire 21,000 square feet in George's Dock and will probably opt to sublet part of the five-storey building, which will have a particularly high specification.
In addition to disposing of the block to Irish Intercontinental, the letting agents, Jones Lang Wootton, are believed to be in negotiations to lease the 25,000 square feet in 3 George's Dock at a rent reputed to be £27.50 per square foot.
The Hardwick-British Land consortium is currently involved in several projects which will ensure that the IFSC is fully developed by autumn, 1997. The company is currently seeking tenders for the development of 105,000 square feet of office space at 5,6 and 7 George's Dock. These blocks will complete the office element and bring total space in the IFSC up to one million square feet. The consortium is also to invite proposals shortly for the use of Stack A, an early 19th century warehouse with a cast-iron construction which is listed for preservation and which has been derelict for several years. It has 80,000 square feet of space and a further 70,000 square feet of vaults. The consortium is expected to spend around £10 million on refurbishing the building which is likely to be used for a variety of purposes including cultural, retail and a fitness centre.
A new retail centre is due to open in the IFSC in the coming weeks and a 400-space multistorey car-park will be available from next July. Jurys's new 234-bed room hotel at Customs House Quay is on target to open in September.
