Ardstone Capital has sold the last of its Dublin office investments amid increasing speculation that office values in the city may have peaked.
In its most recent sale, Ardstone settled on a profit of about €3 million for Block P2 in Eastpoint Business Park. This was sold to Avestus Capital Partners and Ares Management for €12.05 million.
Following its decision to offload its office portfolio and turn attention to the Dublin housing market, Ardstone has had a string of successes – and additional profits of more than €37 million – over the past two years. The company plans to deliver more than 3,000 new houses to the market over three to five years. Its first development is scheduled for Kinsealy next September.
Ardstone bought the Eastpoint office block in 2013 after it had been let to Virgin Media Ireland. The 4,613sq m (49,653sq ft) building has been under-rented for some time. The current rent roll of €647,276 reflects a rental level of €129/sq m (€12/sq ft) and €700 for each of the 71 car parking spaces.
A number of adjoining buildings in Block P2 are let at double that rent level, and many of the other car-parking spaces are also yielding €1,350 per annum.
Donal O’Neill, managing director of Ardstone, said the company was pleased to have made another exit from the office market, which had recovered very strongly over the past four years and has now entered a new phase dominated by core buyers.
Other office assets sold include the eight-storey Velasco office building at Clanwilliam Place, which was bought by Irish Life for €58 million; 2 Harbourmaster Place to German investor Real IS for €53.75 million; and €20.5 million from Credit Suisse for the newly refurbished office block at 100 Mount Street.
More recently, Ardstone sold a retail strip along Morrison Chambers, to Meyer Bergman at a significant profit.