IPUT plc announces that it has pre-let 40 Molesworth Street, the newly redeveloped 2,800 sq m (30,000 sq ft) office building at the heart of Dublin’s commercial and governmental quarter to U.S. online retailer Jet.com. The 20-year lease at a headline rent of €60 per sq ft has a term certain of 12 years and will add €1.8m to IPUT’s current rental income.
Jet.com is a leading U.S. online retailer whose business is focused solely on the U.S. market, offering a wide assortment of products in the Home, Grocery, Health + Beauty, and Fashion categories, among other consumable and durable products.
Commenting, IPUT plc Chief Executive Officer Niall Gaffney, noted:
We are delighted to welcome Jet.com to IPUT’s expanding roster of domestic and international occupiers. This is a strong indication of underlying demand for high quality space in the Dublin office market. The letting also supports our strategy of regenerating our existing portfolio and sets a benchmark for our other projects currently underway nearby at 10 Molesworth Street, Dublin 2, and at ‘The Exchange’ in Dublin’s IFSC.
The building, which is located on a commanding corner of Molesworth Street and Dawson Street, two of Dublin’s most distinguished thoroughfares, was acquired by IPUT in March 2013 for €8.4m. IPUT secured planning permission for a substantial redevelopment of the entire building. Vacant possession was secured in May 2016 when IPUT commenced a full redevelopment scheme at a cost of approximately €13m. The existing structure was stripped back to its frame and two penthouse office floors added. The external façade has been completely transformed with a high-performance curtain walling system finished in a distinctive hand crafted Petersen brick.
40 Molesworth Street has been completed to the highest standards internally providing the ultimate occupier experience in a superb business location while also enriching its prestigious environment and the heritage of the surrounding area. On completion, the building is expected to achieve a valuation in excess of €40m. This represents a total return on cost for the fund of over 8%.
The building benefits from excellent transport connectivity including public bus, Luas cross city and Green Lines, mainline rail connections and easy access to Dublin Airport by car or coach service. Significant employee amenities are being provided including excellent showering and changing facilities. The building also has bicycle storage on-site and a Dublin Bikes station directly to the front of the building.
40 Molesworth Street is expected to achieve a Gold certified environmental performance through the LEED assessment system. The redevelopment of 40 Molesworth Street is part of the wider regeneration of the Molesworth Street/Dawson Street area which will benefit from the Luas cross city line due to complete in late 2017. IPUT has engaged with Dublin City Council to enhance and upgrade the public realm along Molesworth Street. This will involve enhanced pedestrian areas to create a grand thoroughfare in keeping with the historical setting for the building.
Savills handled the letting on behalf of IPUT plc and Jet.com was advised by Colliers.
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