Spencer Dock or City Quay for bank HQ

THE US BANK, BNY Mellon, is to decide shortly whether to opt for a new Irish headquarters at Spencer Dock in the north Dublin docklands or an alternative site on the opposite side of the river Liffey at City Quay.

The bank plans to locate its 1,200-strong workforce based in four sites around Dublin into a single head office on either site.

Though both locations shortlisted are under the control of Nama, the New York bank has been assured that investment funding will be available to develop the new HQ on either site provided lease terms can be agreed. The required finance is likely to come from either pension funds, international institutions or overseas funds.

The largest of the two sites on offer extends to two-and-a-half acres at Spencer Dock and fronts directly on to the waterfront. It is owned by Treasury Holdings and adjoins the partially built office block planned as a new headquarters for Anglo Irish Bank which now looks like being acquired by the Central Bank.

The second site of just over 0.6 of an acre at City Quay also overlooks the Liffey and was assembled by Seán Dunne’s Mountbrook Homes at the height of the market. Solicitors Lennon Heather occupied an office block on part of the site for a number of years. Paul McCann of Grant Thornton is acting as receiver to the Mountbrook.

Although the value of development land has fallen dramatically over the past two years, the City Quay site is still thought to be worth at least €7-€8 million because of its high profile location within easy walking distance of O’Connell Bridge and the main transport services.

The 13,935sq m (150,000sq ft) head office planned by the bank is likely to cost anything from €35-€40 million to develop and furnish, depending on the internal specification required. Rental terms are likely to be in the mid €30s per sq ft (€322 per sq m) with a 25-year lease and no break options for at least 15 years. The planners are likely to allow six or seven-storey buildings on either site.

Two of the bank’s businesses are located on the north side of the Liffey at Guild House in Guild Street and at AIG House in the IFSC. Another branch trades out of Hanover Building on Windmill Lane and the Harcourt Building on Harcourt Street. There is also a separate operation at Cork Airport Business Park in Cork.

BNY Mellon opened its first Dublin office in 1994. It provides a wide range of services in asset servicing, corporate trust and depositary receipts. It is also a leading provider of execution, clearing and custody services to financial services organisations in Ireland.