Kennedy Wilson's Baggot Plaza reaches practical completion

Property investment company Kennedy Wilson Europe announced on Monday that is has achieved a major milestone at its Baggot Plaza, Dublin project, reaching practical completion and handing the building over to the governor and company of the Bank of Ireland.

The FTSE 250 firm entered into an agreement for lease with the Bank of Ireland in May 2015, for a 25-year lease of the entire building at a headline rent of €47.50 per square foot.

It included a tenant break option at year 20 and a rent free period from practical completion of 11 months.

Kennedy Wilson’s board said Baggot Plaza is a key property in its Dublin CBD office portfolio, which includes 10 offices totalling 0.6 million square feet, with an aggregate portfolio value of €496.2m.

“To deliver such a comprehensive redevelopment on time in only 15 months and to be able to come within budget, given all the supply side constraints in the Dublin construction market, is a significant achievement by our development team,” said Kennedy Wilson Europe president and CEO Mary Ricks.

"Our Dublin office portfolio has high occupancy with robust long-term income to excellent covenants in desirable locations in Dublin's CBD and south suburbs.

“While it is too early to assess the speed and magnitude of UK's decision to exit the EU, Dublin is well placed to benefit from job relocations or new foreign direct investment opportunities that may arise,” Ricks added.

The company’s head of development Peter McKenna said they have worked in partnership with the Bank of Ireland and John Sisk & Sons - their main contractor - to ensure all the teams could meet the aggressive practical completion deadline.

“We are pleased to have facilitated the Bank of Ireland's teams to commence fit out works in conjunction with our construction to facilitate early access.”