Commercial Property

Office building with apartments and supermarket on sale for €24m

Independent House and Brett Court measure 61,000sq ft and produce rent of €1.47m

Independent House, which was built in 2004, has five storeys of offices over a supermarket at street level.

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Jack Fagan
Wed Oct 4 2017 - 07:15

An office building rented by Independent News & Media, along with an adjoining supermarket and 10 apartments in Dublin’s north inner city, are expected to make in excess of €24 million when they are offered for sale from today.

At that valuation, the investment will show an initial yield of 5.9 per cent.

The portfolio was developed by Bennett Construction in 2004 and is being sold by estate agents CBRE at the request of receiver Ken Tyrrell of PwC.

Independent House and Brett Court, located at Talbot Street and Foley Street, have an overall floor area 5,600sq m (61,000sq ft).

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The sale will also include 26 basement car parking spaces.

The two buildings produce a rental income of €1.47 million. The offices and supermarket have a weighted average lease term to run of eight years.

Independent News & Media pays a rent of more than €1.04 million, which equates to an average rent of €236/sq m (€22/sq ft).

CBRE says the rental terms “undoubtedly offers investors strong reversionary potential for the high quality Grade A office space”.

The 25-year office lease runs from 2004 with a break option in 2024. Similar office accommodation in the north inner city can range up to €322/sq m (€30/sq ft).

The supermarket is occupied by Kane’s Supervalu on a 25-year lease from 2004 at a rent of €275,000.

This equates to €301/sq m (€28/sq ft).

The tenant recently upgraded the supermarket and opened a cafe at the front of the building.

Brett Court, which stands six storeys over basement fronting on to Foley Street, has 11 apartments, of which 10 are included in the sale.

Nine of the residential units are let and produce a rental income of €152,400.

Willie Norse of CBRE, who is handling the sale, said he envisaged a strong demand for the city centre property as investors would be able to avail of favourable lending terms on an investment of this calibre.

Bennett ConstructionCBREIndependent News & MediaPwC