Sale of Georgian office buildings confirms strong demand

Property agents CBRE have sold two Georgian office buildings used as serviced offices in Dublin's inner city at the request of receivers Sean McNamara and Liam Dowdall of Smith Williamson.

Number 12 Merrion Square, a four-storey over basement building with a floor area of 668.6sq m (7,196sq ft) was sold for €2,850,000 – well ahead of the guide price of €1,950,000.

The house is let under 11 short-term licences and is producing an annual rental income of €210,555. The initial yield will be 7.39 per cent.

CBRE also secured €1,250,000 for 20 Molesworth Street, a 469sq m (5,048sq ft) building which is currently rented at €82,392 a year. The serviced offices are let under 10 short-term licences. There is also a long term lease in place to Gorry Gallery from 1991 at an annual rent of €14,500. The yield in this case will be 6.59 per cent.

CBRE said both sales underlined the strong demand for office investments from private Irish and international investors who wanted to take advantage of the recovering office market.

Separately, the same agents have completed the sale of 38-39 Lower Leeson Street for €2.7 million.