South Docklands 200,000 Sq Ft Office Forward Fund
Former An Post Site Development, Dublin 2
DUBLIN, 30 June 2017 – CBRE, on behalf of Marlet and M&G Investments are excited to launch The Sorting Office to the market. This future Platinum LEED building is currently under construction on the site of the former An Post site located on the corner of Cardiff Lane and Hanover Street East. Marlet and M&G are seeking to dispose of the asset by way of a forward fund deal.
The Sorting Office, which has been designed by Henry J Lyons, will provide a new best in class office development located in the heart of the south docklands. The development is due for completion in Q3 2019 and will extend to 18,930 sq. m. (203,700 sq. ft.) of Platinum LEED office accommodation split over 8 levels. The building has been designed to ensure maximum flexibility through horizontal and vertical division of the building depending on occupier requirements. The building will have 26 car spaces and 318 bicycle spaces.
The location of The Sorting Office is ideal given it is in the heart of the south docklands, dubbed ‘Silicon Dock’, due to the high concentration of technology companies located in the area. There are excellent transport connections such as the DART, Luas, Commuter Train Line, Dublin Bus and Dublin Bikes all a short distance from the property. Dublin Airport is also located a mere 15 minutes away via the Port Tunnel.
Marlet Property Group is a Dublin based property development company founded by Pat Crean. The company is focused on commercial and residential opportunities in the Dublin area. To date Marlet has acquired some 45 sites in Dublin comprising a mix of existing and future developments for over 4,000 residential units and approximately 60,380 sq. m. (650,000 sq. ft.) of commercial space.
In 2014, Marlet signed an exclusive funding agreement with M&G Investments which has seen total investment to date in excess of €500 million. M&G Investments is a leading investment manager. Established in 1931, the company employs over 2,000 people across Europe and Asia.
The construction of The Sorting Office is timely given the current lack of prime office accommodation in the city centre. Office rents in Dublin City Centre remain stable with prime headline rents at approximately €673 per sq m. Prime office yields are currently 4.65% and we believe they are trending stronger. Investor demand for prime office accommodation remains a key feature of the investment market at present.
The Sorting Office is an excellent opportunity for an investor to acquire a brand new office development in the centre of the south docks. The continued growth in the Dublin Docklands office market highlights the strength of the location from both an occupier and investor perspective. We believe this development fits the criteria for many investors seeking to expand their CBD office portfolios and also is an ideal purchase for new entrants to the Irish market.
CBRE and Marlet Property Group are indicating that The Sorting Office is priced in the region of €750 per sq. ft. on the basis of a vacant possession sale with a top-up based on leasing deals secured at practical completion. Given the demand fundamentals in the Dublin office occupational market, it is envisaged pre-lets are achievable.
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
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 135 employees, we work with occupiers, investors and developers of office, industrial and logistic, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie