Savills has brought the Point Square development in Dublin’s north docklands to the market on behalf of the Joint Statutory Receivers, Stephen Tennant and Paul McCann of Grant Thornton, with a guide price of €75m.
The mixed-use scheme comprises approximately 103,000 sq ft of office space, a 242,000 sq ft shopping centre which incorporates a 95,000 sq ft anchor store, over 61,000 sq ft of space with planning permission for retail and/ or leisure use, a 6-screen cinema let to Odeon, 756 car parking spaces and 24,000 sq ft of permitted café / restaurant space – home to various food and beverage operators including Starbucks, Eddie Rockets, Ruby’s, Salad Box and Freshii. In addition, Crossfit 353 have opened a gym in the scheme. The sale will also include the Glass Box, situated in Point Square, Dublin’s first ‘glass box’ restaurant which is nearing completion and currently available to let.
The Gibson Hotel, owned by Deka and operated by Dalata, forms part of the wider scheme but this, together with the 95,000 sq ft anchor unit over two floors, owned by Dunnes Stores, are held separately via a long leasehold interests and are not included in the sale.
Adjoining developments include the 3 Arena, Ireland’s leading entertainment venue, the Exo Building, currently under construction and due for completion in Q3 2021 and Point Campus Student Accommodation – a development comprising 966 student accommodation beds, acquired by DWS in 2019.
Commenting on the proposed sale, Fergus O’Farrell, Investment Director in Savills said, “Point Square offers investors that rare opportunity to put in place an innovative and exciting asset management strategy while collecting significant rent roll. The retail component of Point Square offers buyers a blank canvas to put their unique stamp on this project, situated in an area that has undergone transformational change in recent years and where the likes of Microsoft, Salesforce and the Central Bank call home along with 25,000 residents.”
Point Square is located on the North Docks in Dublin’s CBD; an area which is currently undergoing significant commercial and residential development with 2.2 million sq ft of commercial space (predominantly offices) and approximately 3,600 apartments either approaching practical completion, under construction or completing the planning process.
Noteworthy developments include the aforementioned Exo Building – a 17 storey office building extending to 169,000 sq ft which, on completion, will see the addition of 2,000 workers to the immediate vicinity, Dublin Landings – a commercial and residential scheme extending to over 1 million sq ft, Spencer Place – a mixed-use development comprising 379,000 sq ft of Grade A office accommodation (pre-let to Salesforce) and 329 apartments, and North Dock, comprising a 241 bedroom aparthotel and two Grade A office buildings extending to 200,000 sq ft.
The scheme benefits from its proximity to Fairview and Clontarf as well as the new Poolbeg development located just across the Eastlink Bridge, which will deliver 3,800 homes and 1 million sq ft of commercial space, further increasing the catchment area.
With such a rapidly growing local population of office workers and apartment dwellers, the opportunity for investors at Point Square is unique. As such, Savills expects significant interest in the asset. Point Square is considered to be one of the best asset management and value add opportunities to come to the market in Dublin in recent years. The office section is occupied by Oath (Yahoo!) and Voxpro and has an average passing rent of c. €36 per square foot with reversionary potential. The offices have a weighted average unexpired term of 2.7 years with strong reversionary potential.
The scheme’s combined annual rent roll of €4.9 million (split 80%:20% in favour of the offices) has the potential to grow through asset management initiatives and a repositioning of the vacant space within the shopping centre. In addition, a feasibility study suggests that there is potential, subject to planning permission, to add extra floors at roof level of the office block. With the surrounding heights and its location in a strategic development zone, the scheme has good prospects in achieving the extra height.