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Nortel opts for sale and leaseback(The Irish Times Via Thomson Dialog NewsEdge)Investments: The property portfolio in Galway of high-tech firm Nortel - available on a sale and leaseback basis - should generate 28 million for the company, writes Jack Fagan One of Galway's leading companies, Nortel, is to embark on a sale and leaseback of most of its office complex at Mervue Business Park in Galway. Nortel has been based at Mervue since 1973 and operates one of the world's most advanced telecommunications research centres from that location. Roland O'Connell of Hamilton Osborne King, who is handling the property transaction, will not be providing any guide price but investment advisers estimate that the deal should be worth at least 28 million to Nortel. Hamilton Osborne King is advising interested parties that, not only can they purchase an income-producing property let to one of the world's leading companies, but the deal offers significant potential for redevelopment. Nortel has gradually changed its focus from manufacturing to high value global research and development. The company provides international customer sales, operations and finance support across Europe from its Galway base. The sale and leaseback proposition reflects this progression as Nortel will continue to occupy 8,000sq m (86,112sq ft) of space which will be leased back for a term of 20 years. The rent roll of 1.2 million reflects a rent of 161 per sq m (15 per sq ft). The remaining 8,000sq m (86,112sq ft) in the 1973 Nortel building will be sold with vacant possession apart from about 1,200sq m (12,916sq ft) which is let on a short term lease to another company. The sale will also include the modern Lyrr Building, currently sublet, which has a floor area of around 1,858sq m (20,000sq ft). All the buildings are fitted out to the highest standards, including air conditioning, sprinkler systems and metal ceiling tiles. "In many ways the finishes are more typical of the International Financial Services Centre in Dublin than a former production facility," according to HOK. Mike Conroy, site leader for Nortel in Galway, says its long term commitment to the site demonstrated the importance of this facility to Nortel in supporting global customers and also allowed it to continue the development of its state-of-the-art research and development facilities. |