Building in Maynooth Business Campus for €4.65m

A partially occupied office building at the front of Maynooth Business Campus in Co Kildare is to be offered for sale at €4.65 million, which will show a net initial yield of 8 per cent. Savills is handling the sale on the instructions of Grant Thornton, receivers of Ray Grehan's property business.

Block C is producing a rental income of €387,500 with potential to increase that figure to above €600,000 once the remaining space on the ground floor has been fitted out and leased. The fully let block could be expected to produce a return of about 10 per cent, according to Kevin McMahon of Savills.

The building is 70 per cent let to Capita Asset Services, the business management company, which pays a total rent of€420,270. But that net income drops to €387,850 once an allowance is made for the irrecoverable landlord service charges on the vacant space.

Two leases

Capita’s lease on the second floor runs for 10 years from 2010 and its lease on the first floor runs for 10 years from 2016 with a five-year break option. The company did not exercise its break option on the second floor space in 2015. The current weighted average lease period has 3.8 years to the earliest termination and 6.3 years until the lease expires.

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Block C was built in the early 2000s and extends to 5,388sq m (58,000sq ft) with 150 car-parking spaces. The floor plates have a regular shape and emanate from around a full height central atrium.

Mr McMahon said the incoming purchaser could immediately increase the returns and add value through letting the vacant accommodation. “With a capital value of around €80 per sq ft, we expect considerable interest in this sale.”

Capita is a leading provider of business process management and integrated professional support services. The company has 75,000 staff across Ireland, the UK, Europe, South Africa and India. It launched its Irish operation in 1999.