US chip design company Ceva has paid $5.7 million (€3.86 million) to get out of a long-term lease on a property on Harcourt Street in Dublin.

The building was formerly the headquarters of Irish chip designer Parthus, which merged with Ceva in 2002. Parthus co-founder Peter McManamon is chairman of Ceva, which is quoted on the Nasdaq stock exchange in New York.

Ceva was paying $1.3 million a year for the Dublin property, and the lease had another 14 years to run.

The building is owned by Veton Properties, which is controlled by property developer Paddy McKillen and solicitor Ivor Fitzpatrick through a vehicle called Pivotal Holdings. Mr McManamon and fellow Parthus founder Brian Long own one-third of Veton.

If sold, market sources say the triple-fronted Georgian building with modern extension would fetch €10-€12 million, according to sources in the property industry.

Ceva vacated the building in 2004 when its staff numbers fell to 60 and moved its Irish employees to a building on nearby Hatch Street.

In a statement, Ceva said it terminated the lease on Hatch Street at the end of last year. "The company's current real estate status is in line with its current business needs."

Mr McKillen developed the Jervis shopping centre in Dublin city centre, and has partnered Bono and The Edge of U2 on the proposed redevelopment of the Clarence Hotel.

Mr Fitzpatrick has a legal practice on St Stephen's Green, and has worked with Mr McKillen on a number of developments.

Mr Long and Mr McManamon are both partners in Atlantic Bridge Ventures, a technology- focused venture capital and private equity firm based in Dublin. Last month Atlantic Bridge and Ceva quadrupled their investment when they sold GloNav, a spin-out of Ceva, to NXP Semiconductors for $110 million.

At the height of the technology boom in the late-90s Parthus employed almost 200 staff at its Harcourt Street offices.