Bank of Ireland Asset Management is expected to secure in excess of £5.5 million for an office investment at 7/9 Merrion Row, in Dublin 2, which is held under a long lease by the Office of Public Works.

DTZ Sherry FitzGerald is handling the sale. The building may well be acquired by the State as part of its new policy of buying offices, where possible, in which it has long-standing lease arrangements. The State bought several blocks in the city a few years ago but has been unable to make much progress in recent times because owners are reluctant to sell at a time when city centre rents have been rising faster than at any time in the past.

The OPW has leased space in several new blocks for State services over the past year and is also developing its own office building near the Four Courts. The 17,845 sq ft sq ft Merrion Row building is producing rents of £195,000, which break back at around £12 per sq ft. However, a rent review due next October is likely to see the rent rise to at least £25 per sq ft, even though open market rents for buildings in this location are around £30 per sq ft. The four-storey building is occupied by staff of the National Museum, who are due to relocate to Collins Barracks.

The OPW is then expected to move in part of another Government department, given the close proximity to Government buildings.

The office comes with one car space.