Fast-growing Irish computer software company Iona Technologies looks set to lease a large new office development, which is under construction at Shelbourne Road in Ballsbridge, Dublin 4. The company is expected to relocate to three office blocks with a total of 100,000 square feet, which are due to be completed in spring at the G & T Crampton site. If the deal goes ahead, it will be the largest office letting in Dublin outside the International Financial Services Centre since Ulster Bank moved its Dublin headquarters to George's Quay about four years ago. Giving Iona exclusive negotiating rights on the entire office scheme will mean Statoil will no longer be able to rent 27,000 square feet of space in the development. The Norwegian state-owned oil company was involved in lengthy negotiations over several months but it is understood it had not completed contracts by the time Iona arrived on the scene. Statoil currently operates out of Deans Grange and has been anxious to move to a high-profile location since it took over most of Jet's service stations. Peter Stapleton of letting agents Lisney confirmed yesterday that "the entire office scheme" is off the market but refused to confirm they are involved in discussions with Iona. The rent for a company taking the three office blocks is likely to be in excess of £17 per square foot. There will also be 100 carparking spaces, which will cost an extra £1,000 each. The lease is expected to provide for a break clause in either the 10th or the 15th years.
Iona currently occupies over 20,000 square feet of space in a building at Pembroke Street owned by Cramptons.
Only last week, Iona unveiled the world's first off-the-shelf package enabling diverse software systems to work together. The company already controls 60 per cent of the world market for object middleware software. Iona was successfully floated on the New York's Nasdaq market last March and is due to be listed shortly on the Dublin stock exchange.
The ESB Superannuation Fund is financing the first two blocks of 55,000 square feet, which will be completed around March. A third block of 44,561 square feet, which will be completed a few weeks later, is to be retained by the construction company, Cramptons. The ESB fund is committing about £12.5 million to the Ballsbridge office blocks after selling on older buildings in secondary locations. The decision to invest in a speculative development looks like paying off because of the serious shortage of new offices in the city. The pick-up in demand has also encouraged Ryde Developments to resume construction work on its Sweepstake office scheme at Merrion Road after a lapse of five years.
