Convention Centre contract for sale

The contract to operate the Convention Centre Dublin is to be sold, it was announced yesterday.

The contract is one of a number of assets relating to the centre that are being sold following an order by the joint liquidators of Spencer Dock Development Company — who own the venue — to sell the concession contract which permits the operation of the centre.

Additionally, a 320-space car park located beneath the centre and the licence to build and operate an approximately 330-bed hotel beside the centre are the other assets being disposed of by the liquidators, Paul McCann and Michael McAteer of Grant Thornton.

Rubicon Infrastructure Advisors have been appointed as financial advisers for the sale of the assets which, based on projections of future activity, is estimated to be worth €80m — making the sale one of the largest public-private partnership transactions in Europe in the past two years.

There are currently two main revenue streams available to the operators of the centre which opened in 2012: a payment from the Office of Public Works (OPW) to maintain availability of the centre for public events, and revenue generated from events hosted at the centre. Both the car park and the hotel have the potential to be profitable in their own right, according to Grant Thornton. The official process has not yet been commenced.

In 2012, the centre’s operating profits rose nine-fold to €5.4m. The upturn in performance was delivered largely on the back of a 25% increase in revenues from €20.4m to €24.1m in the 12 months to the end of February 2013.

The centre’s revenues were made up of more than €15m arising from events at the venue, while a further €8.7m in operational revenues were received from the OPW.

The venue, located adjacent to Dublin’s International Financial Services Centre, was built under public-private partnership and opened in September 2010.

The centre has won 26 industry awards and has been named the number one overseas conference centre for three years running at an awards ceremony in the UK.