€7m for offices in Waterford business park

Investments: An office investment at the IDA Waterford Business and Technology Park has come on the market with a guide price of €7 million.

The initial yield will be 5.6 per cent, according to joint selling agents DTZ Sherry FitzGerald and John Rohan Auctioneers.

Block A, a detached three-storey modern office building, is producing a rental income of €437,000 per annum. It has a floor area of 2,600sq m (27,986sq ft) and 90 surface car-parking spaces.

The ground and first floors are let to CITI Hedge Fund Services (Ireland) Ltd on two 20-year leases from 2005 and 2007.

There are break options in years 2013 and 2018. Citigroup employs more than 2,000 staff in Ireland.

Part of the second floor in the building is rented by the IDA for a term of 20 years from 2002. The State body also has break options in 2012 and 2017.

Lisa McInerney of DTZ Sherry FitzGerald says the investment offers an attractive yield involving two blue chip covenants.

The office block is located off the N25 Waterford bypass close to the planned new Butlerstown roundabout.

The roadway is to incorporate an additional river crossing near the city from 2010.