Temple Bar modern offices sell for £1.9 million

A subsidiary of McInerney Holdings has sold a modern office and retail building in Dublin's Temple Bar area for £1.9 million, equating to an initial yield of 5.6 per cent. The five-storey Castle River House, at the junction of Parliament Street and Essex Street East, was developed about eight years ago by Hillview Securities and is currently producing a rental income of £114,600. The ground floor lease in the 70,000 sq. ft building is held by Black and Decker, which recently vacated the premises and is now selling the lease. According to Lena Mulligan of Lisney, who arranged the sale, the offices are currently let at rents of between £11 per sq. ft and £14.25 per sq. ft. She anticipates that there will be good rental growth which should push the yield to around 6.5 per cent. The office tenants are British Telecom, Company Formations, O'Malley & Hogan and Robert O'Brien. The purchaser will be able to avail of capital allowances.