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Barclays has signed a lease agreement for more office space in Dublin as the bank prepares to expand its operations in the Irish capital.

The high street bank has signed a 20-year lease agreement with Green Reit, an Irish real estate development trust, to let two-and-a-half floors cover 3,437 square meters in central Dublin. 

Lease Agreement

The annual rent for the 20-year lease is €2.35 million, which adds up to €670 per square meter, with Barclays entitled to a market level rent free period at the beginning of the lease. The UK-bank has an option to break the lease at the end of the year 12.

The bank’s new offices can put up more than 400 workers. Barclays has already a licensed entity in Dublin, Barclays Bank Ireland, employing around 100 people, which has a license to conduct primarily corporate banking activities. It is located at Park Place on Hatch Street, where it rents over 1,393 square meters or 15,000 square feet.

 

Last month, Barclays was in talks with Irish regulators about extending its activities in Dublin to cope with the impact of Britain's exit from the European Union.

 

Dublin and Frankfurt are emerging preferred choices so far for banks to relocate some of their London operations to.

 

“We are delighted to have secured our first office letting at One Molesworth Street, our flagship building at the heart of Dublin’s central business district, and to have secured such a high caliber tenant as Barclays,” said Paul Culhane of Green Reit.

 

Rental Income

 

One Molesworth St. looks set to bring in an overall rental income of around 5 million euro for Green REIT and to trigger a higher than the expected capital value because of the tenant line up, the remarkable finish planned for the building and its prime location opposite Hibernian Way.

 

The redevelopment of One Molesworth St is expected to be completed sometime in the last three months of the year,  but the exact date when Barclays will take possession of its leased space remains unknown.

 

“We look forward to leasing up the balance of the office space and our retail space, where discussions are ongoing with prospective tenants on both fronts,” Culhane added.

 

Bank of America Merill Lynch, which is one of Green REIT’s current tenants in Dublin, has picked the Irish city to be its new EU headquarters.

 

JP Morgan Chase agreed in May to buy a building with room for 1,000 staff in Dublin’s docklands area.

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