The combination of immediate rental income and an attractive return supported by a strong tenant covenant is expected to see interest from both domestic and international investors in the sale of Verschoyle House.
Located on Lower Mount Street in Dublin city centre, the subject property briefly comprises a refurbished grade A office block of 1,598sq m (17,201sq ft) along with eight basement car-parking spaces. The building, which is fully let to two tenants and generating total annual rental income of €881,895, is being offered to the market by agent Knight Frank at a guide price of €13 million.
The larger of the two occupiers, The Pensions Authority (which occupies 77 per cent of the building), is a statutory body set up under the Department of Social Protection to regulate pension providers and trustees. The authority occupies the lower ground and first to fourth floors under two leases, paying a current rent of €668,400 per annum. The ground floor is let to leading agri-food business, Ornua, at a current rent of €213,495 per annum. There is potential according to the selling agent to increase the overall income following the settlement of an outstanding rent review on the third floor.
A look ahead to 2023
The investment also offers further development potential. Planning permission was previously granted for the infill of part of the atrium area on the first to fourth floors and for the extension of the office floor plate on the fourth and fifth floors. The approved works allowed for the addition of a further 306.87sq m (3,303.12sq ft) of floor space. While this consent has since lapsed, the selling agent believes that a similar application for development would likely be successful.
Verschoyle House is located on the south side of Lower Mount Street, approximately 250m from Merrion Square, 1km from St Stephen’s Green and 900m from Grand Canal Dock. The immediate area is home to a wide range of major employers including the OPW, Google, LinkedIn, Twitter and SMBC Aviation Capital.