ESB fund agrees to sell Pounds 6.4m offices to Royal Liver

THE ESB Superannuation Fund has agreed terms for the sale of two major office investments to Royal Liver Assurance for about Pounds 6.4 million. The sales will show a yield of around 7 per cent.

The most valuable building is located at Beech Hill Office Campus, Clonskeagh, and is occupied by Irish Shell. The 17,500-square-foot block and 68 car-parking spaces are rented at Pounds 272,000 per annum under a 25- year lease from 1991.

Beech Hill is one of the best office parks where the prospects for rental growth appear strong.

The ESB fund has also sold an office building at the Adelphi Centre, Dun Laoghaire, Co Dublin, as part of its policy of withdrawing from that development. The 16,000-square-foot block and 30 car-parking spaces are rented by pharmaceutical giant Smithkline Beecham at a rent of Pounds 215,000 per annum. The building is estimated to be worth around Pounds 2.8 million but the final value is likely to be determined by a rent review, which is under way. The current rent stands at around Pounds 12 per square foot.

The ESB also owns two other blocks in the Adelphi Centre, which are occupied by telecommunications group Ericsson. The two blocks have a combined space of 33,000 square feet.

Paul Fanning of Druker Fanning advised Royal Liver while Peter Shannon of Shannon and Co acted for the ESB.

The ESB's move to disengage from some of its older office investments has been dictated by a decision to finance part of a large office development at Shelbourne Road, Ballsbridge, Dublin 4. The fund is paying Pounds 12.8 million for two office blocks with 54,500 square feet which are being built at the G & T Crampton site. The two blocks are due to be completed next April. A third block of 41,500 square feet will be developed and retained by Cramptons.

Royal Liver has one of the largest Irish property portfolios held by a UK company. In January of last year it spent Pounds 6.5 million on three Dublin properties. The largest of these, Grattan House, a 40,000-square- foot office block on Lower Mount Street, Dublin 2, was sold by Irish Life for Pounds 3.5 million. Royal Liver also bought the Irish Ferries/Guardian Royal Exchange building at Merrion Row and the Golden Disc store at North Earl Street.

Royal Liver's strong retail portfolio includes a large retail park on the Naas Road, five Grafton Street buildings and four in Henry Street.