Allsop Space completes sale of majority of buildings prior to auction

Allsop Space has agreed the sale of most of its Project Steel portfolio of industrial buildings prior to auction today for €11 million.

The portfolio, which came to the market last November seeking €13.5 million while producing a total rent roll of €2,321,769, included 24 predominantly warehouse units in Dublin, Galway, Mullingar, and Monaghan. These were being sold on behalf of receivers Duff & Phelps and Mazars for a single banking institution.

Six first-round bids were received for Project Steel and, after a second round of best-and-final bids, a preferred bidder was selected with a deadline of January 12th to complete legal due diligence and exchange contracts. Ultimately the bidder could not transact in time and the properties were put into Allsop’s auction planned for today.

Fresh offer

However, the auction process generated further interest in the portfolio and the same bidder tabled a fresh offer and signed contracts prior to today’s auction date.

“We believe that the combined private treaty and auction sale demonstrates the power of Allsop Space’s private-treaty-to-auction service,” the agency said.

“In portfolio sales such as this, the service allows contracts to be exchanged and enforced within a set time frame, thereby deleveraging the execution risk that can arise between sales being agreed and contracts exchanging.”

With five lots still for sale, the agent is confident of securing more than €14 million for the entire portfolio as the properties have a combined reserve of €3.16 million.

Outstanding lots

The outstanding lots include Unit 1 at Block C, City Link Business Park, Old Naas Road, Dublin 12.

The trade counter unit of 403sq m (4,340sq ft) is let to Java Republic for a term of 25 years from June 1999 at a current rent of €24,390 per annum. The reserve range here is €160,000 to €180,000.

Another trade counter unit – at Unit 3 in Block D at City Link Business Park – has a reserve range of €225,000 to €245,000. The 273sq m (2,942sq ft) investment is let to Heyn Engineering Ltd t/a BFT for 25 years from January 2000 at a rent of €35,000 per annum.

An office block – Unit 1, Block A – also at City Link Business Park has a reserve range of €1.6 million to €1.7 million. It is let to Damovo Ireland Ltd for 21 years from January 2002 at a rent of €168,000 per annum and has 1,711sq m (18,415sq ft) of space.

A third trade counter unit – Unit 4, Block D – at City Link Business Park is let to Absolute Drain Services t/a Greenday for four years and nine months from February 2010 at a rent of €20,000 per annum. It has a reserve range of €145,000 to €165,000 and 278sq m (2,988sq ft) of space.

The last available unit in Project Steel is a 2,136sq m (23,000sq ft) warehouse at the IDA Industrial Estate in Clonmore, Mullingar, Co Westmeath. It is let to the IDA for 35 years from February 1983 at a current rent of €208,705 per annum and has a reserve range of €875,000 to €950,000.