The sale of two office buildings on Merrion Square has set a yield of 4.6  per cent, writes property editor, Jack Fagan

A new benchmark yield for a Georgian office investment has been set with the sale of two adjoining houses, numbers 91 and 92 Merrion Square, Dublin 2, for almost €8 million.

The sale will show a net yield of 4.6 per cent on the buildings, which are occupied by IIB Bank on a long lease.

The investment was sold by Finnegan Menton for the Nestlé Ireland Pension Fund and was bought for a Dublin businessman.

There were several underbidders for the two interconnecting Georgian buildings which have a modern two-storey extension at the rear bringing the floor area up to 996 sq m (10,730 sq ft). There are 17 car-parking spaces.

The bank is currently paying a rent of €400,000 per annum under a 35-year lease which has another 14 years to run.

John Finnegan of the selling agents said the selling price represented "a record yield for a Georgian office investment. The buildings deserved to get the record price because, not only were they one of the best office investments to be offered for sale for some time, but they had all the attributes one looked for in a good investment.

"These included an excellent covenant in IIB, a long lease, superb buildings and a first-class location, adjoining the National Gallery and Government Buildings."

John McNally of McNally Handy & Partners advised the purchaser.