The nine-storey building is occupied by the National Treasury Management Agency (NTMA).
The decline in the value of the asset reflects the wider malaise in the sector as developers grapple with a continuing remote working trend that has hit demand for office space.
The 300-year lease on the building was bought in 2018 by a German-backed closed-end investment fund for about €167m. The value had climbed since then, hitting €176m at the end of 2022.
However, it was valued at €160m at the end of 2023, accounts filed in Luxembourg show.
“After the end of the financial year on which this audit is based, the market value of the property in Ireland, Dublin Landings, was again determined by an expert in December 2023,” accounts for the company behind the property note.
“At around €160m, this was €16.5m below the market value of the previous year, which corresponds to a change in the value of about -9.4pc, which subsequently had an impact on the net asset value of the fund,” the accounts add.
In March this year, a loan agreement for about €70m was concluded by the firm with BayernLB to refinance No 1, Dublin Landings. The proceeds were used to repay shareholder loans that had been made to the firm.
At around €160m, this was €16.5m below the market value of the previous year
Dublin Landings was jointly developed by Sean Mulryan’s Ballymore and Singapore’s Oxley. It includes one million square foot of grade A office space across five buildings. It also features 268 apartments, as well as retail and other commercial units.
In 2019, US property investment giant Greystar acquired the apartments for €176m. All the buildings developed at the site by Ballymore and Oxley have now been sold.
In 2018, KanAM Grund Ream paid €106m on behalf of two South Korean institutions for No 2 Dublin Landings. It had intended to sell the property in 2022, but suspended the sales process amid wider uncertainty in international property markets. Earlier this year, receivers from Deloitte were appointed to No 2, Dublin Landings.
Also in 2018, the Central Bank of Ireland acquired No 4 and No 5, Dublin Landings for a total of €210m.
Iput bought No 3, Dublin Landings in 2019 for €115m.
In the financial year to the end of June 2023, the accounts for the company behind No 1, Dublin Landings, Sol Estate PropCo IE Dublin Landings, show that it collected just under €6.9m in rental income for the period.
A report this week from BNP Paribas Real Estate Ireland said that the lettings cycle in Dublin’s office market “appears to have passed rock bottom”.
But it warned that the strengthening demand has been unable to match supply, with the overall vacancy rate rising to 15.2pc in the second quarter. It expects the vacancy rate to climb to between 16.5pc and 17pc by the end of the year.
The report noted that 86,250sqm of office space in Dublin was taken up in the second quarter. That was the highest figure for two-and-a-half years.
