Fully-let south Dublin office investment seeking €15.1m

The combination of a strong initial yield of 7.18 per cent and a prime suburban location is expected to drive the sale of a fully-let office investment at Sandyford in south Dublin.

Agent TWM is guiding individual prices of €8.6 million and €6.5 million respectively for the long leasehold interest of lots 1 and 2 within the Sandyford Business Centre portfolio. The entire is available for sale at an overall guide price of €15.1 million.

While the Sandyford Business Centre scheme comprises eight blocks in total, units 2, 5A/5B, 7 and 8 were sold on long leases (circa 235 years) and are not included in the current sale.

Lot 1 consists of units 1, 3 and 4 (2,807sq m/30,216sq ft) and 117 car spaces, while lot 2 includes units 5C and 6 (1,725sq m/18,570sq ft) and 83 car spaces. Taken together, the five office units and their associated provision of 200 car-parking spaces are producing a combined annual rental income of €1,192,578 with a weighted average unexpired lease term of 5.8 years, with breaks at 4.6 years.

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There are a number of long-term business tenants on site including Medlab Pathology, Arkphire Ireland and Imagine Network Services.

Rent reviews

While lots 1 and 2 are fully-let currently, Michele Jackson of TWM says there is scope for the purchaser to manage and increase the rental income through re-lettings, rent reviews and letting of vacant car-parking spaces. Recent activity in the area indicates a market rent of about €23 per sq ft and €1,000 per car-parking space. Buyers may also want to consider the potential options to buy or sell individual units in the future.

Sandyford Business Centre is a prime suburban office scheme within the wider Sandyford Business District. Located just 10km south of Dublin city centre, the subject property benefits from excellent connectivity thanks to its proximity to the Stillorgan Luas stop, the N11 and the M50 motorway.

Sandyford is home to a growing range of major international and domestic employers including Facebook, Google, Salesforce, Bayer and AIB. The area is well served in terms of amenities. These include the Beacon South Quarter, the Clayton Hotel, Leopardstown Racecourse, the West Wood Club, and the nearby Dundrum Town Centre and Stillorgan village.