Clonshaugh industrial with €10m of capital allowances for €17.5 million

IndustrialInvestment: A part-vacant industrial investment with €10 million in capital allowances and full planning permission to redevelop the site at Clonshaugh Industrial Estate in Dublin 17 has come on the market through joint agents CBRE Gunne and Jones Lang LaSalle. The property is expected to make over €17.5 million when it goes to tender on June 23rd.

The 5.07 hectares (12.52 acres) site at Clonshaugh is ideally located between Dublin city and the airport, close to the entrance of the Dublin Port Tunnel and also within close proximity of the M1 and the M50 motorways.

The high quality facility extends to 20,283sq m (218,324sq ft) at number 13 Clonshaugh Industrial Estate. A strong selling point is that there is full planning permission for various schemes including 37 light enterprise units totalling 9,336sq m (100,492sq ft) and 20 own-door office units of 1,752sq m (18,858sq ft). There are also three separate permissions to provide between six and 11 office building of flexible sizes at ground and first floor levels extending to a maximum of 15,548sq m (167,357sq ft).

All these permissions have been worked around the current tenant, Jabil Global Services, which occupy a 6,046sq m (65,079sq ft) production facility at an annual rent of €557,393 on a 25-year full repairing and insuring lease with five yearly rent reviews from December 2002.

There are tenant break options, subject to six months notice at the end of years 10 and 15. Jabil also occupy an additional area of 1,277sq m (13,745sq ft) on a short term nine-year 11-month lease from December 2003, with a break option at the end of year five.

The rents can be written off against capital allowances and, according to the selling agents, offer a unique opportunity for a developer seeking short term income to finance planning for any of the uses permissible under the zoning.

The property is held freehold and there are no IDA restrictions. The agents say this further enhances the opportunity to make it one of the most accessible and unencumbered sites to go for sale for some time.

They also say that the opening of the port tunnel next spring and the subsequent removal of heavy goods vehicles from the city centre will vastly improve the Clonshaugh location by increasing its appeal to occupiers seeking to gain the competitive advantage of a position next to the tunnel entrance, the M50 and Dublin Airport.