The fate of Ireland’s tallest commercial building is once again in doubt after the 22-storey Belfast office block was put on the market with a guide price of £5m.
Owned by the National Asset Management Agency (NAMA), Windsor House is situated in the heart of Belfast’s office district and was acquired in 2007 by Lauderdale Properties with the intention of converting it to luxury apartments.
When the property crash forced the partnership into administration two years later NAMA took control of the office block, purchased through a Bank of Ireland loan. The bank’s entire property portfolio was subsequently transferred to the agency.
Now the 80-metre high tower has been placed in the hands of property agents CBRE which is inviting offers in excess of £5m. If realised, the price for the 122,557sq ft building would equate to almost £41 per sq ft.
The Bedford Street property has become iconic on account of its external green elevator shaft and green side wall facade, as well as for its satellite and aerial masts which extend its height by a further seven metres.
The majority of its 22 floors are vacant, with some leased to Government bodies such as the Parole Commissioners Office, HM Revenue & Customs, the Information Service of Northern Ireland, the Parades Commission and the British-Irish Joint Secretariat. Current rental income is just over £204,000.
Despite the growing shortage of Grade A office space in and around Belfast city centre the building, which also incorporates two ground floor retail units and has parking for 96 vehicles, is once again being tipped for conversion into a hotel, flats or even student accommodation. Subject to planning approval, any development would also generate substantial tax allowances through Northern Ireland’s Business Premises Renovation Allowances scheme.
“Windsor House offers a unique opportunity to refurbish a landmark building in a tax efficient manner,” said Gavin Elliott at CBRE. “Belfast has developed into one of Ireland’s premier business cities and has been extremely successful in attracting foreign direct investment.
“However, one issue has been the lack of quality office space in the city and a comprehensive refurbishment of this property will provide much-needed accommodation as well as strong fundamentals for rental growth in the future.”
Belfast’s commercial property market has recently seen a surge of activity with several landmark sales including the £20m-plus purchase of the Obel, Ireland tallest residential building, by Marathon Asset Management. The New York investment fund, which owns two of the city’s retail parks, is also rumoured to be interested in Windsor House.
And, according to one Irish property analyst, many of the international funds and investors beaten to the Obel are still looking for a “prestige foothold” in the country’s commercial market with “most of them willing to go a lot higher than Windsor House’s £5m starting price”.
