Adelaide Chambers offices at €13m offer 5.5% net initial yield

Dublin city scheme generating €785,000 in annual rent from strong tenant line-up

Adelaide Chambers occupies a prime location just 400 metres from St Stephen’s Green in Dublin city centre

The prospect of immediate income from a strong tenant line-up coupled with the opportunity for further rental growth should see significant interest in the sale of the offices at Adelaide Chambers in Dublin city centre.

Acquired by a German private equity investor for €7.32 million in 2018, the landmark scheme is being offered to the market, following the completion of a strong and successful asset management programme, at a guide price of €13 million.

While that programme saw in an increase in the building’s vacancy rate from five to 14 per cent and the reduction of its tenant base from 12 occupiers to three, the resulting growth in the scheme’s annual rental income from €252,000 to €785,320 offers the prospective purchaser the opportunity to secure a 5.5 per cent net initial yield.

Located on Peter Street and just 400 metres west of the green line Luas stop at St Stephen’s Green, Adelaide Chambers comprises a striking four-storey-over-basement period building with a modern four-storey extension to its eastern side. Steeped in history, the original property dates from the 18th century. Formerly the Adelaide Hospital, the property was fully refurbished and modernised in 2000 to provide 19,369sq ft of grade A offices and 31 basement car parking spaces as part of a wider mixed-use development.


The offices are bright and spacious and generally laid out to provide a mix of open-plan and cellular, own-door office suites. Master key controls have been fitted to all offices and a proximity security card system is in place throughout. Kitchenettes and male and female toilets are provided on each floor level. The Adelaide’s original feature staircase, together with a 16-person passenger lift, provides access to all floors while the building’s glass atrium combines with extensive glazing to give excellent natural light to the communal areas.

Tenant line-up

Some 12,360sq ft (63 per cent) of Adelaide Chambers is leased to Irish technology firm Decawave Limited. The company occupies the entire lower ground, ground and first floors at the scheme on two leases. While these agreements commenced in 2019 and 2021 respectively, they run concurrently until July 2029 with a break option in July 2026. Decawave currently accounts for €578,870 – or 73.7 per cent – of Adelaide Chambers’ €785,320 annual rental income.

Established in 2007, Decawave was acquired in January 2020 for $400 million (€363 million) by Qorvo, an American semiconductor company that designs, manufactures, and supplies radio-frequency systems for applications that drive wireless and broadband communications, as well as foundry services. Decawave is traded as part of NASDAQ and is included as an S&P 500 component. It has approximately 8,000 employees globally and in 2020 had revenues of about $3 billion with a net income of $330 million. Qorvo currently has a net worth of $16.67 billion.

Sebela Ireland Limited, a subsidiary of US-headquartered drug developer Sebela Pharmaceuticals, occupies 2,742sq ft (14 per cent) of the building. The company is a market leader in the development of commercial drugs for patients affected by disease and focuses on therapeutic areas of gastroenterology, colorectal cancer prevention, dermatology and women’s health. Sebela Pharmaceuticals has a significant presence in Dublin, where its chief executive is based, and has acquired Massachusetts firm Braintree Laboratories. It currently has a revenue of over $500 million.

The Health Service Executive (HSE), for its part, occupies 1,780sq ft (9 per cent) of the building. As the publicly funded healthcare system for the Republic of Ireland, the HSE has a current annual budget of €16.05 billion, and more than 65,000 employees on its payroll.

Looking at the opportunities for additional asset management, the selling agent Knight Frank says the only remaining floor to be upgraded/reviewed is the second floor, with a lease event horizon of around nine months, which allows for further enhanced rental income growth. The sale of Adelaide Chambers, it should be noted, excludes part of the third floor which is held and occupied under a long leasehold by the Croatian Embassy.

Ross Fogarty of Knight Frank says: “This opportunity is one that should ideally suit a lower-risk buyer of stable income but with the added attraction of clear value add and income growth potential in a central location.”

Ronald Quinlan

Ronald Quinlan

Ronald Quinlan is Property Editor of The Irish Times