Nortel Seeking Sale Leaseback of Galway Office Complex

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.

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). Sphere: Related Content