€6.5m for office blocks at Citywest

Bluechip tenants paying €663,468 in rent for high-spec space with car-parking

 

Two adjoining office buildings rented by international companies at Citywest Business Campus in west Dublin are to be offered for sale as a single investment. Duncan Lyster of Lisney is inviting offers in the region of €6.5 million for Blocks A and B at Lake Drive which will give investors a net initial return of 9.6 per cent.

The two-storey blocks are a short distance from the extensive offices of SAP Ireland – the German software giant – which were recently sold to an overseas fund for just over €14 million, giving the new owner a yield of 11.2 per cent after costs.

Investors wishing to cash in on the enhanced returns now available in Blocks A and B will be happy to have three strong covenants in Roche, the Swiss multinational, Canon, the world’s largest camera manufacturer, and Aspen Pharma which employs over 6,000 people worldwide. The three companies are paying overall rents of €663,468 for 2,915sq m (31,380sq ft) of office space and 133 car-parking spaces.

Rents vary from €129-€200 per sq m (€12-€18.60 per sq ft), depending when the space was let. Car-parking facilities are rented on the low side at €800 per space. The average period remaining on the office leases works out at 9.75 years.

The two blocks date from 1998 and were finished to a particularly high standard including glazed double height entrance halls, raised access floors and suspended ceilings.

The buildings are owned by a pension fund and were developed by Davy Hickey Properties which has managed to attract about 120 companies to Citywest over the past 15 years.