Aurora Building at €16.5m offers buyer 16.57% net initial yield
Dublin 15 offices are fully-let to Veritas Storage and producing total rental income of €3m
An aerial view of the Aurora shows its high-profile location within Ballycoolin Business Park.
A wide range of investors are expected to express an interest in the Aurora Building in Dublin 15, which has been brought to the market with a guide of €16.5 million.
Situated in Ballycoolin Business Park in Blanchardstown, the property comprises two interconnecting office blocks extending to 11,286.8sq m (121,490sq ft) on a site of 2.69 hectares (6.64 acres). There are 311 car parking spaces.
Extensively refurbished between 2013 and 2015, the Aurora Building is let in its entirety to Veritas Storage (Ireland) Ltd, a wholly-owned subsidiary of Veritas Holdings Ltd, under a seven-year lease from December 2015 at a current passing rent of approximately €1.21 million per annum.
In addition, the tenant is paying an annual fit-out rent of about €1.79 million per annum, payable for the duration of the lease. The €16.5 million guide price equates to an attractive net initial yield of 16.57 per cent, inclusive of the annual fit-out rent and standard purchaser’s cost of 9.96 per cent.
Established in 1983, Veritas is an American international data management company headquartered in California. Operating in 58 countries worldwide, it specialises in storage management software and generates annual revenues in excess of $2 billion. Veritas has sublet approximately 2,143.40sq m (23,071sq ft) to eBay Europe Services Ltd until September 2022.
The property is held by way of a 999-year ground lease from January 1997, subject to a nominal ground rent.
Clive Roche and Mark Fitzpatrick, who are handling the sale on behalf of agent Cushman & Wakefield say: “The Aurora Building provides an exceptional opportunity to purchase a high-yielding office investment, offering significant reversionary potential, at below replacement cost.”