The properties, Blocks C & D, Parkgate Business Centre, Dublin 8, comprise of c. 35,000 sq. ft. of office space over four floors constructed in the 1990s and benefit from 38 basement car park spaces. Parkgate Business Centre is located directly opposite the new Criminal Court of Justice building at the entrance gate to the Phoenix Park. Its location is on the periphery of Dublin City Centre and benefits from excellent transport links – the building is within easy reach of the national road and motorway network, and Heuston Station and the Luas Red Line are about 300 metres away.
These properties are fully occupied by public sector tenants (Health Service Executive (HSE) and Transport Infrastructure Ireland (TII)) and have been maintained to a high standard.
The Asset Manager (RQTwo) has taken control of the building and made contact with tenants. All rent is fully up to date, and is being collected into a controlled rental account.
RQTwo have also commenced exploration of various value-enhancing options for the property. These include an ‘infill’ and height increase redevelopment, as well as the potential for acquisition of adjoining and nearby buildings. To this end, it is noted that adjoining Blocks A & B were recently acquired by Blackstone as part of the ‘Cedar’ portfolio. These blocks are considered to be non-core within that portfolio and may present a consolidation with Blocks C & D.
A further notable positive development since commencement of the Bond has been the submission of a Strategic Housing Development planning application on a neighbouring site (Hickeys) to the property in February 2020. The application, submitted by Chartered Land, is for a major mixed use scheme and comprises office (c.40,000 sq ft), retail and 481 apartment units across four blocks ranging in height from 8 storeys to 29 storeys.
The neighbouring Parkgate property is 4 storeys and the height and scale of the planning application reflects the intention of Dublin City Council to encourage higher density schemes within the strategic redevelopment zone around Heuston Station. The location of the Parkgate property within this strategic zone was a key influencer for the Bond’s investment strategy, and the progression of this planning application is an indication of the expected increase in profile and desirability of the area which will impact positively on the value of the property.