The first substantial office investment offered for sale in Dublin this year, Oldbrook House, at Pembroke Road, Dublin 4, has been sold for around £7.4 million, equating to an initial return of under 5 per cent. The yield is expected to rise to around 7 per cent when the rent is reviewed in December 2000. There was intense competition between ten financial institutions and private investors for the investment which was bought by the Ulster Bank Property Unit Trust. Hamilton Osborne King had been quoting a price of £6 millionplus for the block which was sold on behalf of the Irish Shell Pension Fund. Jones Lang Wootton advised the Ulster Bank fund.
The 31,734 sq ft building is occupied by IBM at a rent of £346,000 under a 29-yearlease with just under ten years to run. The new owners can expect a fairly significant uplift in the rent, now standing at £9.40 per sq ft. The 65 car parking spaces are rented at £700 each. The high level of interest in the investment was prompted not only by the scarcity of similar properties coming on the market but also because of the good location of the building. Even if IBM do not renew the lease when it runs out, the Pembroke Road location should ensure a high level of interest once the block is refurbished.
