I'm a fan of developer Garret Kelleher because he's building an incredible spiral tower in Chicago and he's bringing back a touch of the glory that was once associated with the home of Louis Sullivan and Frank Lloyd Wright. And now he's also attracted the likes of HM Riverdeep to one of his office buildings.
Having swallowed up Houghton Mifflin and with Harcourt Education on his plate, you'd think Barry O'Callaghan might be looking to cut corners. HM Riverdeep has taken a long swim down to the Caymans, after all, to take advantage of the tax breaks, so it looked like there was a tightening of the purse strings.
Either the assumptions are wrong, or HM Riverdeep would like to appear successful. The publishing concern is moving its Irish headquarters to 75 St. Stephen's Green, into one of Garrett Kelleher's projects. In the process, HM Riverdeep will gain the title of Dublin's highest-paying tenant.
The former Department of Justice building has been refurbished for office space, a brilliant way to hold on to structures of historical importance that have outlived their original purpose. HM Riverdeep is to sublease a suite on the fourth floor, approximately 5,000 square feet at 65 euro per square foot, with an eye to house its executives in plush comfort. Additional office space will be found somewhere else in Dublin for the office staff and the rest of HM Riverdeep's Irish branch. The estate agent has said that these parcels are being sub-let for the short-term.
In the company of Dublin's other well-heeled tenants, HM Riverdeep will, for a little while, pay high rents for high-class digs. In spite of the credit crisis, they've said they're moving ahead with the acquisition of Harcourt. The posh surroundings fit the claim. But is the office space on St. Stephen's Green mere window dressing, or a true statement of financial strength?
4 comments:
My opinion is that it's window dressing. Nobody with that much debt is in a strong financial position, no matter what the income. But who are they trying to impress? The outside world, or themselves?
The financial world that will cover the debt to buy up Harcourt? Or maybe they hope to look pretty if Bertelsmann comes calling.
According to The Irish Times, they are "sub-letting the space on a short-term basis" from some solicitors. Doesn't say how short a term, but that lends credence to the "look good for the suitors" theory. But it also says that the plush accomodations are for the execs, while operations will be elsewhere, and that lease will also be short-term. Which could mean something else entirely in the long run. Or at least as long a run as a short-term lease implies.
It could mean that they plan to consolidate in the future when they'll need a bigger or a smaller office, or maybe the situation will change in the future and they won't need the space in Dublin.
There's no crystal balls available for this kind of prognosticating. For all we know, it could be nothing more than a case of executive ego.
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