Nama to finish building Anglo HQ?

Nama to finish building Anglo HQ? - → … 16743.html

Developers eyeing up unfinished Anglo offices - → … 30131.html

Posted days ago on the PIn


The Central Bank is earmarked for it.

No, it’s not even close to being that far yet , there’s three contenders - Central Bank still doesn’t know what it wants. It’s between 60,000 and 150,000 square feet of space that it’s looking for - that’s a huge variation. NIB isn’t a contender for it - too small. BNY Mellon, Central Bank and unknown contender. Nama may finish it itself but one of the banks may buy it, finish it and sell it on immediately with fixed rental uplifts in the lease - would be attractive to an institutional investor.

Nice the way the 3D rendering of the building on Google Earth includes one of th accompanying cranes that has been lying idle for years

Yikes! The cranes are gone.
Stolen for the metal content?
Or sold by NAMA?

Is it just me or is this nuts, especially the underlined bits? Not exactly plausible anyway. Something with fixed rental uplifts in teh lease would be attractive to an institutional investor in a deflating, overpriced, oversupplied commercial property market, with structural changes coming via the abolition of upward only rent reviews and a small broke bank is going to do the flipper. Do banks even do flippers? I thought that was canny developer types.

Oh I forgot, Ireland is different.

Another white elephant. It was estimated in court that it would cost 295 euro per square foot to finish it. It’s rental value was estimated at 30 euro/ foot.

30/295= 10.16% yield. Not bad ROI.

Ignoring the 40m spent to date.

There is no oversupply of office blocks in Dublin city.

Any Financial/Tech company looking to locate in Ireland requires office space. The bigger the company, the larger the office.

I believe there are 6-8 vacant office blocks in the city bigger than 60k sq ft.

Once these offices are let, it will take a min of 2-3 years to build another. Perhaps the multinationals will not wait.

What utter nonsense. Do you think if you say it enough people will start to think it’s true?

"I believe there are 6-8 vacant office blocks in the city bigger than 60k sq ft. " And your belief is informed by what…? A mirage?

In fairness all the VIs are banging that drum at every presentation I’ve been to.
They all say it and can list the big office space. I think central park in d18 is one. East point might be another.
They all claim there’s a shortage of well located big space.

I know I’m stating the obvious here, but if supply is short, demand is high, price goes up. But commerical property prices slid almost 6% in Q2 (albeit this is a figure for Ireland as a whole - can’t find a figure for Dublin just at the moment). How can people claim that there isn’t enough commerical property when there’s nobody willing to pay for it?

There’s actually plenty of commerical property available in Dublin if you’re willing to pay eye watering prices, over twice what you’d pay in Belfast.

Some sources: … n-ireland/ … aper-loss/ … n-q2-2011/

Rent in the North might be cheaper because the IDB provides grant aid for the commercial buildings (especially if let to foreign companies) .
I know in the mid 90’s they would provide the site and pay up to 50% of the building costs.

High spec office rents in Dublin city are in the range of €15-25 per sq foot with rental yields in the range of 8-12%.

So what? My point is that rent is much lower in Belfast than in Dublin. We’ve had plenty of incentives in the South too. The reasons for the price disparity are much more complex than you have outlined.

I ain’t arguing that rents aren’t high. I’m saying that they’re declining at a rapid pace because the market isn’t competitive due to oversupply and ridiculous rent rules which are subject to change in the near future.