Prime office facility in Dublin 18 guides at €5 million

A prime, fully let office investment in Sandyford, Dublin 18, is guiding €5 million through agent CBRE.

Recently refurbished, Fenward House is behind the Atrium buildings, bought earlier this year by Blackstone, with the Luas stop across the road.

Should the facility sell for the guide price, the purchaser would secure an initial yield of 7.5 per cent, rising to 7.8 per cent in 2016 and 8.2 per cent in 2017 in line with rental increases.

Fenward House extends to 1,835sq m (19,750sq ft) and comes with 34 car-parking spaces. Its grade-A specifications include raised access floors and air conditioning, while the recent refurbishment, overseen by Urban Solutions, added improved lifts and a new reception area.

Slainte

The building is let to

Slainte Technologies

from June 2015 on a 10-year lease, at an initial rent of €389,500. There is a fixed rent rise to €409,250 in June 2016, followed a year later by another, to €429,000.

Colm Luddy, of CBRE, says: "The higher stepped rent breaks back to just over €19 per sq ft and €1,500 per car-parking space, which offers investors excellent potential for rental growth when the rent is subject to an open market review in 2020. The lease is on full repairing and insuring terms, fair wear and tear excepted, and there are no breaks in the lease."

Slainte is an international tech company which provides healthcare software and services that drive efficiencies and quality. It is one of Europe’s fastest-growing healthcare tech companies.

The south Dublin suburban office market is recovering now, after taking a pasting during the crash. With the vacancy rate in the area at about 8 per cent and with prime city-centre office rents at around €52.50 per sq ft, demand for office space in locations such as Sandyford is likely to continue rising.

A sign of the confidence in the location is the fact that Green Reit has started work on the next phase of development in nearby Central Park.