€14.35m for newly let IFSC offices

The strong interest by Irish and overseas funds in welllocated office blocks in Dublin’s maturing IFSC is expected to continue with agents Lisney today unveiling 2 Custom House Plaza as the next investment opportunity.

Like so many of the original blocks in the IFSC, this one has been owned by an investment syndicate and as the lock-in period has now run its course, Irish Life Assurance will be overseeing its sale.

Duncan Lyster of Lisney is guiding €14.35 million for the 18-year-old building, which will give new owners a net initial return of 6.6 per cent.

The selling price equates to a value of €487 per sq ft (€5,241 per sq m), a significant discount over nearby George’s Dock where the latest investment traded at close to €800 per sq ft (€8,611 per sq m).

The five-storey block with a floor area of 2,727sq m (29,430sq ft) and 29 car parking space has experienced a changing of the guard with all the original tenants now replaced and rents largely recast in recent years.

Rental income

The rental income of €990,900 per annum reflects an average rate of just over €344 per sq m (€32 per sq ft), well below the top rents in the IFSC of close to €484 per sq m (€45 per sq ft).

There is clearly scope for the next owners to pitch for significantly higher rents as well as boosting the income from the car park by an additional €40,000 by leasing 14 spaces which are currently unused.

The block is fully let to six strong tenants including PTSB Finance, TD Global Finance, Calypso, Robert Walters and Squared Financial Services with a weighted average unexpired lease term of 5.19 years.

The sale of so many IFSC investment properties in recent years has triggered quite a few changes and a brought in a broader mix of tenants. New developments at CHQ Building and at the former Futures Exchange will also help to reinvigorate the area, according to Duncan Lyster.

Modern specification

The office accommodation in 2 Custom House Plaza is finished to a good modern specification with raised access floors and four pipe fan coil air conditioning. The floor plates are well configured with efficient space units for a wide range of users.

Custom House Plaza is a modern looking development of six interconnecting office buildings located around a central liner glass atrium.

Number 2 Custom House Plaza is located on the north side of Custom House Harbour, adjacent to the Luas, Dart and mainline rail services at Connolly Station and the bus services at Busáras.