Fund buys Blackrock office blocks for €14.5m

The global real estate investment company Kennedy Wilson is continuing to mop up commercial properties, paying €14.5 million for three office buildings in Blackrock Business Park in south Dublin.

Kevin McMahon of Savills handled the sale for an international investment company which bought the investments in a loan book.

The buildings are part of nine office blocks in Blackrock, one of the best-located business parks in the south Dublin suburbs.

The three units have an overall floor area of 4,645sq m (50,000sq ft) and are fully let to eight tenants including companies involved in finance, IT, helicopter fleet management and healthcare. Hair Restoration Ltd occupies one of the three blocks, accounting for 35 per cent of the overall rental income.

Lease term

The portfolio is producing an overall rent of €1,015,653 and has a weighted average unexpired lease term of eight years and four years to a break.

The tenants also have the use of a basement car park with 70 spaces. Two of the three blocks have passing rents of €213 per sq m (€19.80 per sq ft), offering reversionary potential to new owners who probably envisage continued rental growth in the south Dublin suburb.

The three buildings were completed in 2007 as the latest addition to the park. An Post has a large sorting office on the western edge of the park. It is about 600 metres from Blackrock Dart station.