Office/industrial portfolio at €19.7m

Two office investments and an industrial estate in three different Dublin suburbs are to be offered for sale from today at an overall guide price of €19.7 million. Agents HWBC are handling the disposal of the Apex Collection for a client of Irish Life.

The most valuable parts of the portfolio are Blocks A and B opposite the Ashtown Gate of the Phoenix Park on the Navan Road in Dublin 15 which are priced at €9 million and are to be sold as a single asset at an initial yield of 7.3 per cent. The blocks extend to 2,606sq m (28,050sq ft) and form part of the Ashtown Gate office complex.

They have a contracted income of €689,305 per annum with a weighted lease period to run of almost six years.

The tenants, who are paying average rents of €266 per sq m (€24.75 per sq ft), include the OPW, ESRI and Waterways Ireland. New owners will be able to increase the rental income by leasing one vacant floor. Also going for sale are two distinctly attractive modern office building at 3 and 4 Richview Office Park in Clonskeagh, Dublin 14, each of them with floor areas of 600sq m (6,458sq ft). Block 3 is leased to asset manager Tilman Brewin Dolphin at a rent of €135,000, equating to €180 per sq m (€16.80 per sq ft), which will be considered highly reversionary. The lease has 7.66 years to run before a break arises.

Block 4 is leased by Ardagh Packaging Group at a passing rent of €220,576 (€323 per sq m/€30 per sq ft) which would be considered over-rented in today's market. Ardagh has a break option in December of next year with a six-month penalty providing a new owner with an asset management opportunity. The two blocks are individually priced at €2.1 million, providing attractive income yields of 6.15 per cent in the case of block 3 and 10 per cent in the case of block 4.

The third element of the sale, Westlink Industrial Estate on the Kylemore Road near the Red Cow Junction and the M50, has a guide price of €6.5 million which reflects an income yield of 10.44 per cent and a capital value of only €386 per sq m (€35.89 per sq ft). Less than half the 16,825 sq m (181,100 sq ft) of industrial buildings are vacant though letting agents are currently reporting a pick up in demand.

Jonathan Hillyer of HWBC, who is handling the sale, said the collection provides something for all investors, security of income let to good tenants and asset management angles through letting vacancies or regearing leases, and all the while providing investors with attractive income yields. The timing was right for investors to consider the suburban Dublin market both in the office and industrial sectors and this collection addressed that appetite.