Dublin Office Investment Opportunity
Dublin, February 2016 – CBRE have confirmed their instructions to offer Hume House in the heart of Ballsbridge Dublin 4 to the market. Hume House was originally developed in 1966 and extends to 7,608 sq m (81,892 sq ft) of offices over eight floors and includes 119 surface and basement car parking spaces. The building occupies one of the highest profile sites in Ballsbridge on Pembroke Road.
Ballsbridge comprises a vibrant hub approximately 2km south east of Dublin City Centre with excellent amenities including high quality bars, restaurants and hotels such as Paddy Cullen’s Pub the Intercontinental Hotel, Claytons Hotel, and Roly’s Bistro. The Royal Dublin Society (RDS) home to Leinster Rugby and host to numerous concerts and exhibitions and the Aviva Stadium is a short walk. The area has unrivaled connectivity strengthened by the availability of public transportation links including the DART, Dublin Bus, Air Coach and cycle paths which are all on the door step of Hume House.
Ballsbridge is currently the home to many Irish and international companies and embassies. The area will be further enhanced once the development currently under construction Number One Ballsbridge is completed and plans are advanced for the development of the nearby Project Trinity 6.8 acre site acquired by a consortium headed by Chartered Land in 2015. Project Trinity has planning for 490 apartments, a 152 room hotel and 7,154 sq m (77,000 sq ft) of retail and associated commercial space. These developments will transform the centre of Ballsbridge into a modern hub with a redeveloped Hume House potentially forming a centre piece
There is a planning permission in place for a full redevelopment of the site which extends to 0.35 hectares. The development would include the full demolition of the existing office block and the construction of a new grade A office building of part 6, 8 and 9 storeys extending to a total of approximately 16,900 sq m (181,909 sq ft). with 53 car parking spaces. The striking development was designed by Plus Architecture
The building is currently practically fully let and producing an annual rent of approximately €2.1 million from Bank of Ireland, AIB and Audi. The Pearse Trust are also in occupation but under a short term arrangement which will see them vacate the building in June of this year. Full vacant possession can be obtained in 2017 to facilitate redevelopment under the existing planning permission.
An alternative would be to further upgrade the common areas in the existing building the main reception has already been upgraded by the current owners and seek tenants for vacant space to maximise cash flow. The typical floor plates of approximately 11,000 sq ft offer flexible accommodation which can offer suites of 7,000 sq ft and 4,000 sq ft.
Hume House made the headlines when acquired by Developer Sean Dunne in 2006 as part of his overall site assembly strategy in Ballsbridge for €130 million from Irish Life. As part of the price Irish Life acquired solicitors Mattersons HQ building on Sir John Rogersons Quay. In 2011 NAMA appointed a receiver over a number of Mr. Dunne’s assets which were brought to the market towards the end of 2013 as part of a portfolio known as The Platinum Collection.
According to Johnny Horgan of CBRE they are seeking offers in excess of €40 million which would provide a yield of 5% based on the passing income and works out at a €220 per buildable sq ft based off the existing planning permission. This asset is likely to appeal to a wide range of investors and developers due to the quality of the location and the surrounding developments which will totally refresh the offering in the area.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 165 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, business rates and compulsory purchase, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni.