Irish investors and developers are preparing to bid for a complex £1.5bn property outsourcing contract involving millions of pounds worth of government buildings in Northern Ireland.
Finance minister Lord Rooker said last week that the government would press ahead with a sale to modernise the estate (EG, 27 March 2004).
The first phase, to be awarded by Christmas 2006, will see the sale of over 2.5m sq ft of property. The winning bidder will need to invest an estimated £100m to upgrade some of the buildings.
Northern Irish group McAleer & Rushe which bought the Swiss Centre on Leicester Square, W1, and BDO Stoy Hayward’s Baker Street HQ, W1, in the past 12 months is among the potential bidders.
It is about to complete the provinces’s first office PFI.
Ewart Properties, Turkington and Harcourt, and property financier Alburn, are also interested in forming consortia.
“The Irish contingent will put in a lot of equity,” said one market source.
From the UK, Land Securities Trillium, Mapeley, Kier Property, British Land, London & Regional, Topland and Carillion are all interested. London-based outsourcing specialist Monaspire is rumoured to be working with a Northern Irish developer.
Drivers Jonas and Deloitte are advising the government.
References: EGi News 03/10/05
