Five Hanover Quay at €190m offers investors prime position in Dublin docklands

Joint agents JLL and London-based Eastdil Secured expect to see demand from a wide range of international investors for the newly-developed Five Hanover Quay, which they have brought to the market today at a guide price of €190 million.

Located on a prime waterfront site at the heart of the Dublin docklands, the property is fully let, providing an annual rental income of €8.75 million. The guide price reflects a net initial yield of 4.25 per cent assuming standard acquisition costs of 8.46 per cent.

Developed by Targeted Investment Opportunities ICAV (a joint venture between funds managed by Oaktree Capital, Bennett Group and Nama), Five Hanover Quay comprises 14,864sq m (160,000sq ft) of LEED Gold V-rated office space distributed across seven floors.

In designing the building, RKD Architects maximised its south-facing water frontage views, while also incorporating a recessed penthouse with wraparound balconies overlooking the city.

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The lower four floors extend to nearly 9,290sq m (100,000sq ft), and will be occupied by DocuSign. Earlier this week, the company’s chief executive confirmed DocuSign’s intentions to increase its Dublin workforce to 1,000 over the next five years.

The top three floors cover nearly 5,574sq m (60,000sq ft) and are occupied by Aptiv.

There are 40 car-parking spaces at basement level, all of which have been let to the two tenants. The occupiers also have access to 230 bicycle parking spaces, as well as showers and changing facilities.

Five Hanover Quay will provide the purchaser with long-term secure income with a weighted average unexpired lease term of 12 years and guarantors provided by both tenants.

DocuSign Inc is a San Francisco-based company listed on the Nasdaq that pioneered the development of e-signature technology. DocuSign posted impressive January 2019 year-end figures of $701 million (€627 million). Aptiv is a leading global automotive technology company listed on the New York Stock Exchange. Five Hanover Quay is Aptiv's global headquarters.

Average rent

With an approximate average rent of €54 per sq ft across seven floors, the investment offers significant reversionary potential when compared to prime city rents which are reaching over €60 per sq ft.

Five Hanover Quay is located overlooking Grand Canal Square, and within a five-minute walk of the five-star Marker Hotel, as well as a wide selection of coffee shops, restaurants, and convenience stores.

While 2018 proved to be another strong year for the Irish investment market, with year-end volumes totalling €3.6 billion as part of almost 200 deals, demand from overseas investors, particularly those from South Korea and Europe, continues to be robust.

Last February, developer Pat Crean's Marlet Property Group landed the first major investment deal of 2019, after securing an agreement to sell his company's Charlemont Exchange office scheme to the South Korean-based fund Vestas for €150 million.