First big investment by a major institution following Brexit

Joint receivers Luke Charleton and David Hughes of EY today announced the sale of One Spencer Dock to AGC Equity Partners Limited for €242m.

Joint selling agents Savills and CBRE sold the property on behalf of the joint receivers and Davy Real Estate.

The sale of the 21,000 square metre Dublin office block – which is fully occupied by professional services firm PwC – is one of the most high profile office investment sales to occur in Ireland.

“We are very pleased to announce the sale of One Spencer Dock following significant interest from domestic and international investors, which is a testament to the potential and value of a major development such as this. This is a successful outcome which reaffirms the international investor interest in Dublin” said, Joint Receiver Luke Charleton of EY.

This is the first big investment by a major institution following the Brexit referendum.

One Spencer Dock is home to the Irish headquarters of PwC and is renowned as a landmark building in a prime Dublin office location. The property was developed by Treasury Holdings in 2007 and designed by Scott Tallon Walker Architects. The building comprises a nine storey over basement modern office facility which provides Grade A accommodation with 100 basement car parking spaces. The entire property extends to approximately 21,054 sq m (226,624 sq ft).

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The office accommodation is 100% let to PwC under 3 separate coterminous leases. PwC signed a 25 year lease from April 2007 which expires in April 2032 giving an unexpired term certain of 16 years which is an attractive lease length in this market. The total rent is €11,779,241 per annum.

PwC is Ireland’s largest professional services firm and offers an extensive range of expertise to well-known national and international clients. They employ over 1,800 people in their head office, One Spencer Dock and a further 1,000 employees are based throughout Ireland.

Spencer Dock and the wider docklands area is gearing up for the next phase of development which will see new office, retail and residential developments transforming the skyline. This will in part come from the future development of the remaining Spencer Dock site, the Project Wave site, City Quay and the Exo Building adjacent the 3 Arena. This future development will further strengthen the area as a destination for top class occupiers and provide a mix of uses to create an energetic city district. 

Fergus O’Farrell of Savills commented: “The sale marks a significant milestone for the Irish market, and reflects investor confidence in the office market, supported by continued strong occupier demand in the city centre, leading to further rental growth”.

Johnny Horgan of CBRE commented:“This acquisition marks another new entrant to the Irish investment market which reflects positively on the quality of the asset, the Dublin investment market”.