French investor in €23.5m deal for Dublin city office block

French investor Corum Asset Management has paid €23.5 million for the Marshalsea Building at Merchant's Quay in Dublin city centre.

It marks another Irish office property for the French property fund, which last year acquired One Navigation Square in Cork city’s docklands for €60 million, in an off-market deal from O’Callaghan Properties. It also marks yet another move in the Dublin market by a French investor: last week it was reported that Sofidy, the Paris-headquartered real estate investment management firm, acquired Fitzwilliam Hall, a prominent office building at Leeson Street Bridge, for €30.35 million.

The Marshalsea building comprises 4,025sq m (43,335sq ft) of refurbished office accommodation in a city centre location. It was acquired by Sonbrook and Emerald Investment in 2019 as part of a wider portfolio of buildings located on Merchant’s Quay and Bridge Street Upper. A significant refurbishment programme was then undertaken by Sonbrook, which included upgrading the common areas and landscaping. The property returned to the market in September of last year, seeking €23.5 million.

The building is multi-let to nine tenants with a weighted average unexpired lease term of five years and an annual rent roll of €1.45 million. The building is 100 per cent let with 70 per cent of the floor area occupied by State-backed/NGO organisations. Tenants include BDO (sub-let to the HSE), Dublin City Council, Irish Motor Neurone Disease, GCS Recruitment and Microchip Technologies. The building is primarily let to BDO on a long lease expiring in 2026, which is sub-let in its entirety to the HSE.

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Opportunities

As well as providing secure, medium-length income for the purchaser, the asset also offers numerous asset management opportunities both in the short and medium term, with reversionary rents and lease renewals.

Colliers advised Corum Asset Management on the acquisition and Savills advised Sonbrook on the sale.

Michele McGarry of Colliers said the sale “demonstrates market resilience against the backdrop of Covid and confirms demand for good quality, well-let office investment opportunities. Investor demand remains very strong for well-let, city centre office investment, with a severe lack of supply.”

Declan Sexton of Savills said the sale "is testament to the asset management initiatives that were undertaken by our client Sonbrook, with high-quality building refurbishments and a series of new lettings and lease regears, which has delivered a fully repositioned asset".