€21.3m for offices let to State agencies

Commercial Property Editor

Two adjoining office buildings substantially let to government agencies in Dublin city centre will be of interest to a range of overseas funds when they are offered for sale from today at a net yield of 10 per cent.

Jacqueline Fitzpatrick of the JLL agency is guiding €21.3 million for George's Court and 90 North King Street at Smithfield, Dublin 7, which were developed by Liam Carroll's Danninger company and funded by the former Anglo Irish Bank.

The six-storey office blocks over basement car park have an overall floor area of more than 11,240sq m (120,986sq ft) which is currently producing €2,225,457.

About 90 per cent of the income comes from the Office of Public Works.

Retail units
North King Street extends to 4,099sq m (44,133sq ft), has 25 car spaces and is let to the OPW on a 20-year lease from 2008. There is a tenant break option in 2018, subject to 12 months' written notice.

George’s Court has an overall floor area of 7,144sq m (76,905sq ft) and 43 car parking spaces. The ground and first floor offices are also let to the OPW on the same terms as in the other block.

The fourth floor is occupied by the Law Society of Ireland on a 10-year lease from January, 2013, with a break option in the sixth year. There are three further floors vacant along with two retail units on the ground floor.

Ms Fitzpatrick says investors will be aware that there has been a pick-up in demand for modern office space in the city centre.

In this instance, the existing tenants may also require extra space, allowing the new owner to increase the overall yield from the investment.

Both office blocks have top quality reception areas, floor plates extending to 1,114sq m (12,000sq ft), air conditioning, two large lifts, raised access floors, suspended ceilings and natural light via glazed panelling.

The two blocks are located within Dublin’s legal hub, only 300m from Blackhall Place and 700m from the Four Courts.

Offices in the area attract a large number of court and legal-related tenants.