Office SectorIn what will be one of the largest ever requests for office space in Dublin, KPMG is out to identify who can build it 22,296sq m by 2011 and a total of 35,303sq m by 2021, writes Jack Fagan
International accountants and business advisers KPMG is to draw up a shortlist of developers who can provide them with a new high quality headquarters in Dublin city within four years.
The company's requirement for 22,296sq m (240,000sq ft) of space by 2011 and for a total of 35,303sq m (380,000sq ft) by 2021 will be one of the largest ever single requests for office space in the city.
Declan O'Reilly of estate agent HT Meagher O'Reilly, who is advising KPMG, has contacted about eight developers with sites in Dublin 1, 2 and 4 which could accommodate the accountancy firm. Each of them within a precise area is being invited to pitch for the business and to indicate by June 1st the terms they would offer, including the quality of the building, rental terms, break options and whether they would take responsibility for the leases on the buildings currently occupied by KPMG. The commitments on the present buildings come to over €7.5 million. Surprisingly, the firm has invited developers to indicate whether they would enter into a 50-50 joint venture on the development, something that is likely to be shunned at a time when the office market is enjoying great buoyancy.
One of the "big four" accountancy firms in the city, KPMG has more than 1,600 employees and was the top earning firm last year, according to Finance magazine. The firm clearly expects to expand over the coming years, given that it has set a timetable for needing substantially more space up to 2021.
It will start off with 22,296sq m (240,000sq ft) in 2011; expand to 24,154sq m (260,000sq ft) in 2013; then to 27,870sq m (300,000sq ft) in 2016; and to 35,302sq m (380,000sq ft) by 2021.
KPMG's largest office at the moment is at Stokes Place, along the junction of St Stephen's Green and Harcourt Street. The outdated 10,219sq m (110,000sq ft) building is leased from Treasury Holdings at over €4 million per annum. The lease is not due to run out until 2017 but, when KPMG moves out, Treasury will inevitably replace the present buildings with a high density scheme.
The accountancy firm also pays €3 million for 5,759sq m (62,000sq ft) in Harbourmaster Place in the IFSC. This lease has about 18 years to run. It also rents 3,716sq m (40,000sq ft) on a short term basis in Harbourmaster 2.
KPMG's choice will mainly concentrate on Dublin 4 and the south and north docklands. Developer Bernard McNamara could well accommodate the firm on the 3.8-acre Burlington Hotel site, as well as the adjoining one-acre plot where he has already sought planning permission to enlarge the present Allianz office block.
Back in St Stephen's Green, the Ardilaun Centre - where Eircom had its headquarters - will eventually be redeveloped and at a stretch it could possibly be increased in size from 11,260sq m (121,200sq ft) to maybe over 27,870 sq m (300,000 sq ft) if planning permission could be obtained to build over the car park at the rear.
But there is still the ongoing dispute over the €6 million-plus bid by developers David Courtney and Jerry O'Reilly for the leasehold of the Eircom building.
The landlord, the Royal College of Surgeons. is resisting the sale of the lease because of any possible development rights it might confer on its proposed tenants. And, like so many other property disputes, it seems destined to end up in the High Court.
If Ballsbridge is to be the eventual choice, then the obvious site for a high profile office development will be the seven acres acquired by Sean Dunne from Jurys Doyle group. Dunne is expected to seek permission for 50,000 sq m (540,000 sq ft) of offices on the Jurys/Berkeley court site and another 25,000 sq m on the site of the adjoining Hume House.
Liam Carroll has two potential sites: one at Sir John Rogerson's Quay on the south docks; the other formerly known as Brooks Thomas on North Wall Quay. He has just been refused planning permission by Dublin City Council for an eight-storey, 18,580sq m (200,000sq ft) hq for Anglo Irish Bank at Brooks Thomas. His next option might be to go for a Section 25 permission for a smaller scheme to Dublin Docklands Development Authority (DDDA).
It is by no means clear whether KPMG would be prepared to share the site with Anglo Irish Bank. Similarly, it is also uncertain whether the accountancy firm would relocate to nearby Spencer Dock, given that arch rivals PricewaterhouseCoopers have already set up shop there.
Carroll's other option would be to try and entice KPMG to Sir John Rogerson's Quay where he still has unfinished business with the DDDA on the issue of ceding part of his site for the U2 tower and also a new bus and rail bridge that is to link Britton Quay with Ringsend. The DDDA cannot afford to let him dodge the issue any longer.
