Dublin office portfolio on the market for in excess of €50m

Four Dublin office investments have been placed on the market by property advisor, Savills Ireland with a guide price in excess of €50m – reflecting an attractive initial yield of 6.55%.

The assets are being offered to the market in one or more lots.

Savills comment that: “This is an excellent opportunity to acquire four fully income producing office investment properties with significant asset management opportunities in established business districts with low vacancy rates. We anticipate a strong level of demand from domestic and international investors due to attractive and growing returns from high-quality tenants along with value-add opportunities in the short term”

Lot 1 comprises Blocks P1 and P3 in Eastpoint Business Park, Dublin 3 and is guiding in excess of €31 million. The guide price reflects a net initial yield of 6%, and with two upcoming rent reviews later this year providing investors with the opportunity to grow the income to market rent.

Lot 2 comprises Blocks 5 and 9 in Richview Office Park, Clonskeagh guiding in excess of €19 million, which reflects a net initial yield of 7.5%. Both offering strong reversionary potential in the short term. 

P1 Eastpoint Business Park, a stand-alone office block extending to 42,865 sq.ft. (3,982 sq.m.) GIA set over four floors with 61 car spaces.

P3 Eastpoint Business Park a semi-detached office building extending to 50,315 sq.ft. (4,674 sq.m.) GIA set over four floors with 70 car spaces. Both blocks constructed in circa.1999/2000.

Eastpoint Business Park is one of the country’s largest and most successful parks, with over 1.25 million sq.ft. of office space, the park benefits from close proximity to the IFSC, North and South Docklands office locations.The park hosts an array of international occupiers including Deutsche Bank, Oracle, Google, Virgin Media, British Airways, Cisco and Verizon.

P1 is let to Conduit Enterprises Ltd at passing rent of €910,000 pa on an upward only lease expiring in 2025. Top Oil, Quintiles and Citrix have subleases within P1.  

P3 is let to Citrix Systems International GmbH, an American multinational software company, under two separate leases at combined rent of €1,117,334 pa expiring at the end of 2026 with a tenant break at the end of 2021.

Lot 1 offers a WAULT to expiry of 6.3 years and a WAULT to break of 3.8 years. Lot 1 is currently under rented with an average passing rent of only €20 per sq. ft., providing investors with the opportunity to increase income to open market rent at the two upcoming rent reviews later this year.

Both buildings have a modern specification to include raised access floors, suspended ceilings and new air conditioning throughout. P3 was completely upgraded in 2017 to include a new CAT A finish, M&E upgrade,atrium and common area upgrade.

Eastpoint Business Park is located to the north east of Dublin’s CBD and home to global occupiers such as Deutsche Bank, Google, Virgin Media and British Airways. Continued investment and new development in Dublin’s docklands have increased levels of take-up in Eastpoint along with increased rental growth for the past 4 years. Eastpoint has a low vacancy rate of 0.7% reinforcing the demand and success of the business park.Rental tones within Eastpoint Business Park are in the region of €26 – €28 per sq.ft.

Lot 2 comprises Block 5 and Block 9 in Richview Office Park, Clonskeagh both are detached three storey buildings extending to 25,407 sq.ft. (2,360 sq.m.) GIA with 63 cars and 35,869 sq.ft (3,332 sq.m.) with 90 cars respectively. Block 5 is let to Curtiss Wright Controls under a 10-year lease expiring in October 2023 at a passing rent of €565,000 pa. The aviation product and service provider had a recent break which they did not exercise demonstrating the tenant’s commitment to the park. Block 9 is let to Paysys Int. Ltd. And guaranteed by First Data Corporation who were recently acquired by Fiserv, a global fintech company, under a 25-year lease at a passing rent of €980,000 pa, their lease is due to expire in June 2022. The combined WAULT is 3 years offering investors asset management opportunities in the short term.

Richview Office Park is located off the Clonskeagh Road, it is a well-regarded purpose-built business park located approximately 4km south of Dublin’s prime CBD. Richview forms part of the Clonskeagh business park hub, with adjacent Belfield Office Park and Beech Hill Office Campus. Paddy Power is one of the largest occupiers within the Clonskeagh business hub having taken 150,000 sq ft for their Headquarters. Other adjoining occupiers include Ericson, UCD, Microfinance Ireland, Act Venture Capital, Smurfit Kappa and McDonald’s Restaurants of Ireland.

Due to increasingly high occupancy costs in the city centre there has been a shift in demand from certain occupiers to the suburbs over the last 24 months as evident by the vacancy rates. Richview Office Park is located within the Clonskeagh/Dundrum office submarket where current vacancy rate is 4.5%. Recent rental levels within the Clonskeagh/ Dundrum area are achieving €25-€28 per sq.ft.