Property
'Tara Collection' of office buildings on sale in Dublin for €263.8m
By Finfacts Team
Nov 19, 2014 - 8:19 AM

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The 'Tara Collection' may conjure up tableware but property folk have invoked the traditional seat of the high kings of Ireland to add lustre to the disparate buildings and what they share in common is their association with NAMA - the State's toxic property loans agency.

CBRE and JLL say that the main assets are the Daniel Libeskind designed 4 & 5 Grand Canal Square, both occupied by Facebook under two leases. The other assets are all in prime locations: Alexandra House in the Sweepstakes development in Ballsbridge, Dublin 4, 86-88 Lower Leeson Street, Dublin 2
and One Grand Parade overlooking the Grand Canal. "The collection provides an investor with an opportunity to gain a significant foothold in the Dublin CBD (central business district) office market" and can be bought individually or together.

CBRE and JLL say that "the Tara Collection is superbly placed to benefit from the limited supply of quality office accommodation in the CBD and the strong recovery in the Dublin office market. Consequently the pace of increase in office rents in prime locations has accelerated and this is likely to continue. The grade A office vacancy rate in the prime Dublin 2 and 4 districts is at an all-time low. The investment market is also breaking records with €3bn of investments traded in the first 3 quarters of 2014 and this figure does not include loan sales."

With a total area of approximately 33,000 sq. m (356,000 sq. ft.) across the properties, the guide price for the Tara Collection is €263.8m.

The property agents say that the "undoubted jewels are 4 & 5 Grand Canal Square. These two world class BREEAM Excellent rated buildings were developed by Chartered Land, one of Ireland’s leading property development companies, who have developed in excess of 0.24m sq. m (2.6m sq. ft.) of premier retail and office buildings in Dublin. Facebook occupy both buildings under two separate leases, forming their EMEA Headquarters and the largest Facebook presence outside the United States.

"Both buildings are built to an exceptionally high standard incorporating full height atriums and exceptional finishes throughout. Number 4 which extends to 11,417 sq. m (122,894 sq. ft.) was let to Facebook under a 15 year full repairing and insuring lease from January 2014 at a passing rent of approximately €4.5m per annum. This lease incorporates a break after year 10 and the rent breaks back to €35 per sq.ft. Facebook have also recently agreed lease terms for the adjoining Number 5 under a 15 year lease incorporating a break after 12 years. The annual rent is approximately €5.99m which equates to €45 per sq. ft. The term commencement is May 2015. The buildings are available individually and the guide price for Number 4 is €102.2m while the 11,857 sq. m (127,628 sq. ft.) Number 5 is guiding at €113.8m."

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