Joint agents CBRE and Savills will be bringing Block R Spencer Dock, an exceptional Grade A office block, to the market next week at a guide price in excess of €90,000,000, reflecting a net initial yield of 5.18% and a capital value of €708 per sq. ft.
Block R is situated on Spencer Dock in the North Docklands, immediately adjacent to the National Convention Centre and Kilmore House. The area is considered a vibrant commercial hub with occupiers including PWC, A&L Goodbody Solicitors, Credit Suisse and Commerzbank.
The property comprises a seven storey over basement modern building which provides Grade A office accommodation over seven floors and three retail units at ground floor level. The building extends to approximately 127,000 sq. ft. with 46 basement car parking spaces.
The office accommodation is 100% let to state tenants and one of the world’s leading building societies. The tenant line-up includes; The Central Bank, Nationwide Building Society and The Commissioners of Public Works in Ireland and the property is generating a combined rental income of €4,873,146 per annum. The most recent tenant to take accommodation within the building was The Commissioners of Public Works in Ireland who just signed a new 20 year lease with a break option at the end of year 12.
The building benefits from an attractive weighted average unexpired lease term of 9.93 years. The investment offers strong reversionary potential as over 40% of the office accommodation is currently passing at a rent of €30 per sq. ft. The three retail units at ground floor level are in shell condition and are currently vacant, providing investors with value add opportunities.
Block R was designed by Scott Tallon Walker Architects, developed by Treasury Holdings and constructed by CMP Limited. Construction of the property was completed in 2008 and the building has been maintained to the highest standard since then. Internally, the building is split between the east and west wing with two impressive double height reception areas at ground floor level which are finished to an excellent standard. The floor plates are rectangular in shape and are arranged around an attractive central courtyard which provides flexible bright accommodation. The lift foyers on each floor are tiled and finished to a high standard with male and female toilet accommodation on each floor.
Fergus O’Farrell of Savills says; “Given the high profile location, security of long term income from state bodies in conjunction with continued investor appetite for Grade A office buildings we anticipate a strong level of interest in the property”.
Colm Luddy of CBRE commented that “The quality of the development will mean that Block R will appeal to both international and Irish institutional investors and this opportunity is well positioned to benefit from rental growth in the office market.”