IndustrialEstates: A novel industrial development is underway in the Clonshaugh Industrial Estate in north Dublin, targeted specifically at manufacturing companies.Qualifying firms can reduce rents by about half by availing of the scheme, according to its promoters.
The service is provided as a complete package according to Nigel Healy at Jones Lang LaSalle.
The company is joint agent for the scheme with CB Richard Ellis Gunne and Irish Mortgage Corporation provides finance for the development, known as the Clonghaugh Enterprise Park.
The building purchase scheme is open to manufacturers and to IDA qualifying enterprises, Mr Healy said.
"The beauty of the scheme is there are manufacturers' allowances for this.
"The tax incentives and allowances can be set against the annual mortgage costs, thus reducing them by about half."
These allowances are only available for manufacturers and those qualifying under the IDA's regulated-use clause, explained Mr Garrett McClean, head of industrial agency at CB Richard Ellis Gunne.
"That is why we are targeting small manufacturers in the north Dublin area who might be renting space.
"This is an opportunity for them to purchase a unit and reduce their costs," he said.
An existing 20,438 sq m (220,000 sq ft) unit in the estate that has €5 million in capital allowances available to it is to be sub-divided and largely rebuilt into much smaller units. These will come in a range of sizes starting from about 211sqm (2,271 sq ft).
"We are creating new units from that and a number of refurbished units.
"Everybody has an outside, everybody has frontage, with separate entrance and parking outside their doors. The scheme will then be added to with a new terrace of units," he added.
An exclusive finance package has been arranged with the Irish Mortgage Corporation, which will offer qualifying firms an 80 per cent 20-year commercial loan at a variable interest rate which currently stands at 4 per cent.
Current rental rates at Clonshaugh are about €102 per sq m (€9.50 per sq ft), but if purchased and with tax and manufacturing allowances, this can be reduced to about €53.82 per sq m (€5 per sq ft), Mr McClean said.
And the purchaser retains the asset.
A typical yearly rental cost in the estate for a 211 sq m (2,271sqft) unit would be about €21,780, he said.
If purchased under this scheme, manufacturers' and tax allowances would reduce this by €10,164, giving a net cost of €11,616.
"You can see the advantages for the small manufacturer. It begins to make proper sense for them," Mr McClean added.
The scheme is located within the well-established IDA park at Clonshaugh, in a strategic position adjacent to the M1, M50 and Dublin Airport.
It lies about 6.5 kms from the city centre and is near the Dublin Port Tunnel, due for completion in 2004.
Units will be finished to the highest standards including profile metallic cladding with double skin metal deck roofs and electrically operated roller shutters. Fully fitted offices can be provided to suit specific occupier requirements.
