Investors looking to secure a foothold in the fast-growing Dublin 8 area will be interested in the sale of offices at One Kilmainham Square.
Located within close proximity to both Heuston Station and Heuston South Quarter (HSQ), the property has been brought to the market by agent Knight Frank at guide price of €32 million.
The investment briefly comprises a five-storey Grade A office block, and is being offered for sale with the benefit of long-term leases to several leading international occupiers, including Heineken, Parexel Pharma and Klas Telecom. The weighted average unexpired lease term is 7.3 years (5.62 years to break).
With an income of €2.07 million, a sale at the guide price would provide the buyer with a return of 6.0 per cent, with potential to increase the yield to 7.25 per cent in the short term through the letting of a vacant office suite of 393sq m, and the completion of a rent review on the first, second and and third floors in early 2020.
The building is low-rise and, in the medium term, there is also potential to develop further space over the existing fourth floor, subject to planning permission.
The sale of One Kilmainham Square at the €32 million guide price should, meanwhile provide the vendor, Avestus Capital Partners, with an even healthier return on its original investment.
Avestus acquired the building along with two other office properties at 51-54 Pearse Street and Magennis Court on Pearse Street for about €45 million in 2016 as part of a joint venture investment programme with Ares Asset Management.
Having sold the two Pearse Street properties for €27.2 million earlier this year, the sale of One Kilmainham Square for €32 million now would see Avestus and its joint partners secure a return of 31.5 per cent on their original investment, based on the overall €14.2 million uplift in the portfolio’s value.
One Kilmainham Square is laid out over five floors with basement car parking. Externally, the block has glazed elevations incorporating a “floating” stone cladding system with stone clad brise-soleil and extensive terraces at fourth-floor level. The entrance to the offices is by way of a light-filled, full-height, glazed atrium with feature link-bridge over the atrium void.
The building design uses structural steelwork to achieve 16m clear spans, reducing the need for internal columns. The accommodation provides bright, flexible office floors, which are capable of subdivision.
Standard landlord finishes include full air-conditioning, raised-access floors and fully-fitted common areas. The flexible floor plates are “C” shape, with a central service core/amenity space.
One Kilmainham Square is close to Heuston Station, and approximately 3km from Dublin city centre, with excellent connectivity by rail, tram and bus to all parts of the city and surrounding suburbs. The Dublin 8 area is undergoing extensive regeneration with a number of major developments either under way or in train including the proposed St James’s Gate Quarter at Guinness’s landmark St James’s Gate brewery, the extension of Heuston South Quarter (HSQ) and the office developments at Smithfield Square.