City office block up for sale with €50m price tag
One of Dublin's best-known office buildings is on the market with a €50m price tag.
Cumberland House is just behind Merrion Square in the heart of Dublin 2.
It was built in the 1970s, but has already been granted planning permission for the construction of a new Grade A office building that will extend the gross internal floor area to approximately 315,000 sq ft.
"Cumberland House is a unique development opportunity that offers a purchaser the ability to provide a prime Grade A office building in a highly-accessible and central location," said Mark Reynolds, director of development and consultancy at Savills Ireland.
"The benefit of the existing planning permission ensures the certainty of deliverability in a timely fashion that will allow potential occupiers to consider Cumberland House immediately as a future destination," he said.
There has been no noteworthy office building built in Dublin since 2010, and at present there are only two new significant office projects under construction - the former Canada House on St Stephen's Green and the Former Veterinary College in Ballsbridge.
The D2 property is a seven-storey over-basement office building and comes with 213 car parking spaces on a site of 1.64 acres.
The upturn in the economy has seen an increase in the city in the take-up of office space.
It has emerged that this year will see the highest level of activity in six years.
Figures show that approximately 71pc of the office space was taken in central Dublin.
Many companies prefer a city-centre location, but the availability of space will largely dictate where tenants go over the next couple of years as demand grows and supply shrinks, the property experts said.
"With occupier demand on the rise, a highly-accessible central location is paramount for the majority of employers," they said.
The building is well-served by public transport and is close to Stephen's Green.
"The combination of strong occupier demand and tight supply is a recipe for rental growth, and prime office rents have increased by 30pc or so in the past 12 months," according to Savills.
"Very few development opportunities of this quality have been offered to the market, but the strength of interest in those that have been offered indicate clearly a level of demand for this product type.
"Indeed, the office development market has been slow to react to the increased job creation and occupier demand, and Cumberland House presents developers with a chance to get involved at the beginning of the current development cycle."
Cumberland House is being sold with vacant possession by way of private treaty.
Savills said they have already received considerable interest from both local and international investors and developers.
The property was built in 1977 and currently has a gross internal floor area of 146,000 sq ft.
Its location is a 10-minute walk from St Stephen's Green.
Take-up of office space in the first six months of 2014 was just over 98,000 sq metres, according to figures from Savills.