Office Investment One of the finest Georgian office investment to reach the market for several years goes for sale next month when the Nestle Ireland Pension Fund sells 91/92 Merrion Square, Dublin 2, which is occupied by IIB Bank.
Agents Finnegan Menton is quoting a guide price of €6 million - equating to a yield of 6 per cent - for the building which is let on a 35-year lease until 2017 at a current rent of €400,000. It has a mix of two interconnecting Georgian buildings and a two-storey modern extension at the rear. There are 17 on-site car spaces.
The previous owners, Irish Life, installed a lift before it sold the investment in 1991. The Nestle fund is selling the property because, like some others, it is overweight in property in terms of its overall portfolio.
One of the interesting features of the investment is that the rent is reviewed each time to 85 per cent of the open market value. Accordingly, whoever buys it will effectively be getting a 15 per cent discount on the value of the building. It is understood that at the end of the lease in 14 years the rent will then revert to full market value.
