The combination of a prime location straddling Dublin’s traditional central business district and its thriving south docklands, redevelopment potential in the medium term, and strong rental income is expected to help drive the sale of Newmount House on Lower Mount Street. The subject property, a five-storey building of 1,689sq m (18,178sq ft) is being offered to the market by agent Savills at a guide price of €7 million.
While that price equates to a capital value of €385 per sq ft, that’s some €115 less per sq ft than the €500 per sq ft businessman Laurence Goodman jnr paid when he acquired the nearby 70-88 Lower Mount Street (5,593sq m/60,207sq ft) from Iput for €30 million late last year.
The gulf in pricing between the two properties isn’t entirely unsurprising when one considers the difference in the weighted average unexpired lease terms (WAULT), their respective tenant profiles, and the planning approval that’s already in place for the redevelopment of numbers 70-83.
While Newmount House is currently multi-tenanted and generating a strong rental income of €637,991 per annum, the weighted average unexpired lease term is 1.21 years. Meanwhile, numbers 70-83 are fully let to the Office of Public Works until 2031 with a break option in 2028.
Corkman leading €11bn development of Battersea Power Station in London: ‘We’ve created a place to live, work and play’
Sherry FitzGerald CEO Steven McKenna to leave firm to ‘explore new opportunities’
Industrials: Tough year but rebound on the way
Pubs: Devitt’s on Camden Street biggest sale of the year in resurgent market
Newmount House falls under Dublin City Council’s Z10 zoning, which encourages mixed-use development, offering the flexibility for future projects that could include office, residential, or retail uses. Commenting on this, Seán Ryan McCaffrey of Savills says the building “offers significant medium-term redevelopment potential, making it an attractive prospect for investors seeking to enhance the property’s value through strategic redevelopment, repositioning and refurbishment.
Newmount House is well located within the city’s central business district. Nearby occupiers include Google, Accenture, SMBC Aviation Capital, and the Department of Health. In terms of its connectivity the property has 17 secure surface-level car-parking spaces. It also sits within walking distance of the Dart station at Grand Canal Dock, numerous Dublin Bus routes and the Luas green line stop at Dawson Street.
