Irish property investment group Mm Capital is seeking in excess of €25.5 million for an office investment at 31-36 Golden Lane in Dublin 2 only four months after buying it for about €22 million.
The 2,877sq m (30,967sq ft) building is being upgraded before being let to New Relic, a San Francisco-based software analytics company that is planning to expand its EMEA (Europe, Middle East and Africa) headquarters here.
The guide price will reflect a net initial yield of 5.26 per cent and a capital value of about €825/sq ft. New Relic has agreed a 20-year lease at a rent of €1.455 million, with a break option at the end of year 10 subject to a three-month rental penalty.
Mm Capital is a real estate investment and development firm founded in 2013 by Peter Leonard and Derek Poppinga. New Relic is a leading global digital cloud-based analytics, intelligence and information technology company founded in San Francisco in 2008.
The lease is to be guaranteed by New Relic Inc, a Nasdaq-listed stock exchange company, and will incorporate five yearly open market rent reviews with a 10 per cent cap and collar provision at the first review.
Designed by Scott Tallon Walker, the three-storey modern office building benefits from excellent natural light due to the floor plate design. Externally there is a distinct frontage with a striking curved frame, red brick facade and green and white cladding.
The investment lends itself to potential future asset management opportunities with the expansion of the original building by way of additional floors to the top of the building. The adjoining Radisson Blu Hotel recently obtained Phase 2 planning permission for a total of eight storeys, indicating the potential to increase the office block from three to five storeys based on parapet heights.
Golden Lane is located off George’s Street beside Dunnes Stores headquarters. A range of restaurants, cafes and shops trade in the immediate vicinity. Grafton Street is a six-minute walk away.
According to Kevin McMahon of Savills, the quality of the New Relic covenant together with 10 years' income certainty offers potential investors a secure office investment.