Agent Cushman & Wakefield is guiding a price of €17 million for number 1, Custom House Plaza, a high-profile office investment in the IFSC (International Financial Services Centre).
The property, adjacent to the rear entrance of Connolly train station and close to the site of Dublin Arch – the much-anticipated, major mixed-use development being pursued by developer Sean Mulryan’s Ballymore – is the most prominent of the six buildings within the wider Custom House Plaza scheme. Number 1 extends to 3,863.74sq m (41,589sq ft) and is fitted out to a high specification. Internally the ground floor comprises a reception area, three separate office suites and a self-contained retail unit, while the first to fourth floors offer a mix of cellular and open-plan office space with basement car parking for 48 cars.
The block, which has multiple tenants, is 60 per cent occupied and is generating a gross income of about €951,000 per annum from three tenancies. The net operating income, after allowing for current landlord void costs is about €558,000 per annum. The tenant line-up includes Zellis, a leading provider of payroll and HR solutions and Kaseya, an American IT and security management multinational. Combined they offer a weighted average unexpired lease term (WAULT) of about 4.46 years to the earlier of break/expiry and six years to expiry two.
There is potential for the new owners to grow their income return through the letting of the remaining vacant space, which extends to 1,540.33sq m (16,580sq ft) and includes 21 car parking spaces. Excluding car parking, the current passing office rents reflect an average rate of €371.35 per sq m (€34.60 per sq ft), well below the neighbouring rental levels within the wider Custom Plaza scheme.
Agent Cushman & Wakefield is guiding a price of €17 million for the property, which, after allowing for standard purchaser’s costs of 9.96 per cent, equates to a net initial yield of about 3 per cent and a reversionary yield of over 9 per cent once fully let.
Clive Roche of Cushman & Wakefield says: “Number 1 Custom House Plaza offers investors an exceptional opportunity to acquire a well-located IFSC office investment with significant potential to drive income returns in the short term via asset-management initiatives. The guide price of €17 million breaks back at just over €400 per square foot, a significant discount to previous sales values in the area.”
Further information on the sale can be obtained from Clive Roche, James Loughnan or James Holland at Cushman & Wakefield. Registration for the data room for the sale can be made at 1customhouseplaza.com.
