O'Flynn Secures HP Site for €51m - Construction Network Ireland - Construction Network Ireland

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Published in Commercial Property on 12/09/2018

O’Flynn Secures HP Site for €51m

CNI Editor reports

BlackRock Real Estate Assets and developer Michael O’Flynn have acquired the former Hewlett Packard (HP) campus in Leixlip, Co Kildare for a figure in the region of €51m.

The deal, which was brokered by CBRE Ireland, is one of the largest industrial transactions to have taken place in the Irish market and represents the second investment in Ireland for BlackRock Real Estate’s European value-add strategy. The company has already partnered with the O’Flynn Group on the acquisition of the Point Campus student accommodation site in the Dublin Docklands, which is under construction and due for completion this year.

Extending across 195 acres, HP’s campus comprises nine buildings with a total floor area of 1.47 million sq ft. Current occupiers include Hewlett Packard Enterprise, Celestica, MGS and Global Entserv Solutions. With over 600,000 sq ft of the existing built stock vacant and 70 areas of surplus development land, the scheme, which is being managed by Cushman & Wakefield, offers immediate asset management and development opportunities.

The new owners are planning immediate investment in the Leixlip campus with a complete rebrand to Liffey Business Park that will commence in the coming weeks. The development team, led by the O’Flynn Group, are already working on a masterplan to provide design-and-build facilities for industrial, data centre, pharmaceutical and office occupiers. The masterplan will offer flexible designs to respond to the strong market demand for industrial space. It is expected that the surplus lands could accommodate in the region of 700,000 sq ft to 800,000 sq ft of new development.

The two available units, buildings 7 and 8, both extend to 300,000 sq ft and are suitable for immediate occupation and a range of uses. B7 comprises a two-storey building which provides for former Class 10,000 clean rooms at first floor level with manufacturing space at ground floor level. With large floor plates of 150,000 sq ft and high parking ratios the building is likely to attract a range of potential occupiers.

Building 8 extends to 300,000 sq ft over ground floor only and provides for the largest available floor plate in the Irish market. With a total of 11 dock doors and 11 grade-level loading doors the building is equipped to cater for logistics, manufacturing or warehousing. The building provides 10pc Grade A office accommodation which is available for immediate occupation.

Brendan Smyth, Director at Cushman and Wakefield’s industrial division, says: “Due to the unique nature of the available space there have been a number of direct approaches already from a letting perspective. We expect to have the scheme fully occupied in the coming months with our attention turning to design and build facilities in the short term”.