Norwegian investor buys Smithfield office building for €29m

A Norwegian investor has paid €28.65 million for an office investment in Smithfield, Dublin 7, which was developed by Liam Carroll's Zoe Developments and sold by JLL on the instructions of statutory receiver David Carson of Deloitte. The buyer also recently acquired the Ulster Bank on O'Connell Street for €11.4 million.

Jacqueline Fitzpatrick of JLL handled the sale of George's Court and 90 North King Street which extend to 11,240sq m (121,000sq ft).

The block is 65 per cent occupied, mainly by the Office of Public Works and the Law Society of Ireland at an overall rent of €2.2 million. The selling price reflects a capital value of €2,551 per sq m (€237 per sq ft). There are three vacant office floors in the block and two retail units extending to 3,901sq m (42,000sq ft). It also has 21 parking spaces.

The new owner is planning to refurbish the vacant space as well as the common areas before offering it for letting through DTZ Sherry FitzGerald and Colliers International.

Andrew Watt of Melford Property Consultants, who advised the purchaser, believes George's Court will benefit from the recent upsurge in tenant demand for modern city centre office space and a shortage of suitable supply.

The net initial yield for the transaction is 7.43 per cent, somewhat higher than the 5.08 per cent return available on the Ulster Bank deal.

Natural light

George’s Court is a third generation building with air conditioning, two 13-person lifts, two 10-person lifts, raised floors, suspended ceilings, floor boxes and excellent natural light via glazed panelling.

It is within 300 yards of Blackhall Place and 700 metres from the Four Courts.