KWE pre-lets entire Baggot Plaza redevelopment to Bank of Ireland

Kennedy Wilson Europe has signed an agreement to lease its three-block Baggot Plaza office redevelopment in Dublin 4 to Bank of Ireland.

KWE recently received final planning permission for an extra 37,700 sq ft as part of a complete redevelopment of the existing 91,600 sq ft 1970s structure, located from 27 to 33 Baggot St.

The redevelopment, which will now comprise 129,300 sq ft of space, is made up of three blocks: Block A (64,900 sq ft), which fronts on to Fleming Place; Block B (42,800 sq ft), which interconnects Block A and B and facilitates access to both Baggot St and Fleming Place; and Block C (21,600 sq ft), which fronts on to Baggot St.

Bank of Ireland will enter into a new 25-year lease, with a tenant break option at year 20, for the entire building, at a headline rent of €47.50 per sq ft. For the first five years of the lease KWE will sub-let the office space in Block C at an equivalent rent.

John Sisk & Sons is the main contractor and is currently on site. The development will employ up to 450 staff over the course of the construction. Practical completion expected by the end of the second quarter 2016.

” For Bank of Ireland, this lease provides an important element of its long-term premises strategy in the Mespil Road/Baggot St sub-market, where its HQ is located at our 40/42 Mespil Road, Dublin 4 property,” said KWE president and CEO, Mary Ricks. “We expect Baggot Plaza to set a benchmark for the redevelopment of office stock in Dublin, delivering modern accommodation within the extended frame of the current structure.

“The potential sub-lease of Block C provides KWE with an opportunity to let the space at rents ahead of €47.50 per sq ft given its prime frontage onto Baggot St.”