Nissan gets package of over €2m to take Parkwest lease

John Player & Sons had no option but to offer a significant premium package in order to offload the lease of its former warehouse and office facility at Parkwest Industrial Estate

Cigarette manufacturer John Player & Sons has agreed a compensation package - including a rent-free period - with a total value of over €2 million to motor distributor Nissan to take over the lease of its substantial warehouse and office facility at Parkwest Industrial Estate just inside the M50 in Dublin 12.

Last year Nissan availed of the then strong property market to sell its headquarters at the junction of the Long Mile Road/Walkinstown Avenue and Naas Road to O'Flynn Construction for €115 million. It stands on a site of 18.7 acres.

John Player signed a 25-year lease in 2003 for the purpose-built premises in Parkwest which extends to 9,283sq m (100,000sq ft) and stands on a site of five acres.

The company subsequently ceased production of cigarettes in Dublin and vacated the building in 2006.

With the rent currently standing at €865,000 per annum and no break options available in the lease until 2018, John Player had no option but to offer a significant reverse premium because of the length of the commitment (it could have cost them in excess of €10 million) and the highly competitive terms being offered on industrial sites around the city.

Laurence McCabe of Knight Frank, who advised Nissan, said the firm was delighted with the deal.

The availability of John Player's large, modern premises in a convenient location meant that Nissan no longer had to embark on a design and build project.

John Player & Sons, owned by Imperial Tobacco, employed over 700 people at one stage in the manufacture of cigarettes at its former plant on the South Circular Road in Dublin 8.

It currently has a sales operation at Parkwest Business Park. The company was represented by Savills HOK and Burston Cook of Bristol.

© 2008 The Irish Times

This article appears in the print edition of the Irish Times