Private investors are to fund £34 million worth of commercial buildings at Park West Business Park, close to the interchange of the M50 and the Naas road in west Dublin.
The investments will cover the cost of 250,000 sq ft of business space, which will qualify for special tax breaks because the 80acre site has been designated as an enterprise zone.
The seven groups of investors have committed between £3 million and £7.5 million and will be able to claim 100 per cent capital allowances because the deal was agreed before the Government tightened up on tax allowances in last December's budget. The 80 acres form part of a 180-acre park being developed by businessmen Pat Doherty and Gerry Maguire.
The investors will be able to claim 25 per cent of the capital allowances in the first year and the remainder at a rate of four per cent per annum.
Tenants, who must be approved by the IDA, will qualify for double rent allowances and a remission of rates. The promoters are targeting companies similar to those in East Point in the Dublin docklands. Qualifying companies will mainly be in research and development, international trading services, tele-marketing and computer software.
Sean O'Neill of agents Lambert Smith Hampton said they are in discussion with a number of leading companies and one of these is likely to move into the first building of 25,000 sq ft, which is due to be completed next October. Other buildings will become available on a staggered basis from next autumn.
The investors have been guaranteed a rent of £12 per sq ft for up to three years. The three-storey blocks will have raised floors, suspended ceilings, lifts and optional air conditioning. The design by Projects Architects allows most of the blocks to be sub-dived. Buildings will also be developed to suit the particular needs of some companies. Units will range in size from 5,000 to 120,000 sq ft.
More than 300,000 sq ft of warehousing and light industrial space has been completed and occupied at the park. Two recently completed units have been occupied by the UK electrical giant Dickson and Roches Stores. Dickson is paying a rent of £5.75 per sq ft for its 20,000 sq ft distribution centre. Roches has bought a similar sized buildings. The Joint agents are Palmer McCormack and Sherry FitzGerald.
