Investments:The Alcatel-Lucent office and industrial plant in west Dublin has good redevelopment potential, writes Jack Fagan
The first of a number of sales of commercial properties in Blanchardstown Business & Technology Park in west Dublin is to proceed this week with the disposal of the Alcatel-Lucent office and industrial plant on 5.79 hectares (14.3 acres).
In the coming weeks, the equally large former Fujitsu plant on about 19 acres is also to be offered for sale while the IDA is apparently planning to seek a buyer for a substantial freehold site on the same estate.
Though Lisney is not indicating what the selling price is likely to be for the 25,590sq m (307,743sq ft) Alcatel-Lucent plant, other valuers have suggested that it is likely to make in the region of €18 million.
Should a sale be secured, the American company is willing to lease back around 1,393sq m (15,000sq ft) of office space on the first floor on a new 10-year lease with a break option after five years. The rent will be in the region of €129-€150 per sq m (€12-€14 per sq ft). The timing of the sale has been unfortunate for the company, coming less than three weeks after it issued its third profit warning in nine months. This run of bad luck will be no surprise to the former Lucent Technologies wing of the company which had some serious setbacks over the years. Alcatel and Lucent merged in 2006 and now has operations in 130 countries.
Those interested in the Blanchardstown property are likely to be more interested in the merits of the property and its redevelopment potential.
However, the company has indicated that if a purchaser wants vacant possession in order to redevelop the building, they will be prepared to relocate to a new facility nearby.
Significantly, the IDA will continue to have the final say as to what companies can and cannot use any buildings on the site.
Cathal Daughton of Lisney says the science and technology zoning on the site was designed to facilitate opportunities for science and technology-based employment.
Other uses permitted in principle included cash and carry, wholesale outlet, childcare facilities, enterprise/training centre, light industry, logistics, office-based industry recycling facility, tele-services, shop and café.
The original building of about 11,148sq m (120,000sq ft) dates from the 1980s and more recently two floors of high quality offices were added. The grounds include 591 surface car-parking spaces and a marshalling yard. Further information on the proposal can be found on a dedicated website - www.alcatellucentblanchardstown.com.
