Clonskeagh offices for €5.5m

Another Dublin suburban office block with the opportunity to boost the rental income comes on the market this week.

Agents HWBC is guiding €5.5 million for Beaver House, a three-storey office building at Beech Hill office park in Clonskeagh, Dublin 4, which is to be sold on the instructions of Ulster Bank.

Beaver House, a 2,787sq m (30,000sq ft) building with 90 car parking spaces at basement level, recently underwent an extensive refurbishment programme.

The main tenant is Maxim Integrated Products International Ltd, an Irish subsidiary of a Nasdaq listed company which manufactures semi-conductors.

Maxim has been in Beaver House since 2010. It recently took extra space and now occupies two-thirds of the entire building under a new 15-year lease. Its rent will be €315,000 per annum, leaving only the ground floor available with a floor area of 9,130sq m (9,830sq ft). The initial yield of 5.5 per cent can be increased to more than 8 per cent when the ground floor is rented.

Jonathan Hillyer of HWBC said the suburban office market in Dublin was gaining momentum on the back of the substantial rental increases seen in the city centre and docklands areas.

The asking price in the case of Beaver House equated to about €180 per sq ft which when considered against replacement costs confirmed the uniqueness of the investment opportunity.

Beech Hill office park is located beside the former Smurfit Packaging headquarters and Riverview Sports Club.