Office MarketIPUT, the largest tax-exempt property unit trust in the state, has secured around €16 million for its Leeson Street headquarters as part of its strategy to concentrate on large scale investments.

The office block, just off St Stephen's Green, was bought by Cedarhurst, a relatively new development group which is finishing off the successful Q House scheme in Sandyford.

Adrian Trueick of HT Meagher O'Reilly handled the sale.

The four-storey over ground level modern office block sold by the Irish Property Unit Trust has a reproduction Georgian facade and 31 car-parking spaces under the building at the rear.

It has a floor area of 1,520sq m (16,370sq ft) and is being sold with vacant possession of the ground, first and second floors which extend to 1,000sq m (10,764sq ft). The remaining space is let to Corus Ireland and Finaref Insurance at a rent of €258,000 per annum.

With a total site area of 875sq m (9,418sq ft), only 420sq m (4,521sq ft) of which has been built on, the site has obvious development potential.

The new owners are likely to develop a further 1,200sq m (12,917sq ft) of office space over the rear car-park, linking into the existing Baggot Street building at all levels.

Niall Gaffney of IPUT said the sale represents a strategic decision to move away from older stock and instead to concentrate on a number of the trust's key assets. "We believe that the value of the asset, and in particular the development potential, will be maximised by a private developer."

In a further sign of this strategy, IPUT has also put Aviation House at Burgh Quay on the market.

The building is leased by the Irish Aviation Authority on a 35-year lease from 1981 at a rent of €1.05 million.

A price of €22 million is being sought for the block which has medium term development potential.