A long-income office building in the heart of Dublin 4 is coming to the market guiding €16 million, reflecting a running yield of 7.8 per cent. The sale of the property by Irish Life’s property fund is expected to attract strong interest from both institutional and wealthy private investors.
Brought to market by CBRE, 87-89 Pembroke Road is a modern office property extending to about 30,000sq ft, with 42 car parking spaces. Currently let to Bank of Ireland and the US embassy, both long-standing tenants, the property benefits from a secure weighted average unexpired lease term (WAULT) of over 15 years.
Bank of Ireland occupies the 3,000sq ft ground floor bank branch on a 150-year lease from 1968, and the 8,300sq ft first-floor office on a 25-lease, due to expire in 2031. Bank of Ireland, t/a New Ireland Assurance, recently completed an extensive refurbishment of the first floor, which the agents say demonstrates their commitment to the building and the location.
The third floor extends to 7,935sq ft and is currently leased to the US embassy until 2033, with a tenant break option in 2031. The remaining accommodation on the part ground floor (736sq ft) and second floor (8,413sq ft) is currently available to let, and the floors are presented in CAT A condition.
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The building is very well serviced by public transport with the DART at Lansdowne Road less than an eight-minute walk away, while Pembroke Road is also a key bus corridor.
The property offers significant scope for refurbishment and also redevelopment. The vendor has commissioned Henry J Lyons to carry out multiple feasibility studies on the building, to include the construction of a new 55,000sq ft office building.
Although the energy ratings on the property range from B1-D1, the vendor has also commissioned a Ber improvement plan which includes a roadmap to Ber A3 at an estimated cost of €1.1 million. Additionally, the building has received a provisional BREEAM In-Use Pass rating, with an identified roadmap to achieve BREEAM Very Good.
According to selling agent CBRE, the property offers a “brilliant opportunity” to acquire a secure, income-producing office investment in one of Dublin’s most prestigious locations. It expects significant interest from both institutional and wealthy private investors given the attractive WAULT of over 15 years from strong tenants.
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