Modern office building in Northwood Campus for €10.75m

Northwood House, a modern office investment comprising 24 suites in Santry, Dublin 9, has come to market seeking €10.75 million.

The five-storey-over-basement building is a third-generation office building, constructed in 2009, providing 24 office suites and extending to 4,129sq m (44,447sq ft) along with 115 surface and basement car parking spaces. Current occupiers include Shell, Mazda, Amdipharm Mercury, and the Gaelic Players Association.

According to Stephen Mellon of selling agent QRE, rental and service charge payments were made in full by all occupiers during the pandemic, "which is testament to the quality of tenant and the security of income being generated from this property".

The suites are situated around three separate cores and range in size from 135sq m (1,453sq ft) and 251sq m (2,702sq ft). These can be interconnected horizontally to create larger units.

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QRE is guiding €10.75 million for the investment, reflecting a net initial yield of 7.46 per cent, and allowing for standard purchaser’s costs of 9.96 per cent. With an occupancy rate of 93 per cent, the property is bringing in annual contracted rent of €882,112 a year. Upon letting of the two vacant suites, the estimated rental income would increase to €950,000 a year, thus representing a potential yield in excess of 8 per cent in the short term. The guide price reflects a capital value of €242 per sq ft, which is less than replacement cost.

Given its proximity to Dublin Airport, Northwood is a popular office location, and has attracted major occupiers, including Electric Ireland, BMW, Regus, Affidea, Greencore, Santry Sports Surgery Clinic, with Europcar, Ikea and Decathlon located nearby.

The location is well served by public transport, and Northwood benefits from the Dublin Port Tunnel and the planned Metro North line, which are both on the doorstep of the campus.

Mellon said: “We expect that the investment will be of interest to parties seeking an attractive running yield in the short term, with scope for asset management to enhance rental and capital value in the medium term.”

The business park is also home to a Crowne Plaza Hotel and the Northwood Leisure Centre, and is set for further development.

Earlier this year Westhill Land and Property secured planning permission on two sites at the campus, for 381 apartments and commercial space.