Dublin industrial investments offer investors net initial yields of up to 8.8%

Private investors looking for strong initial yields will be interested in two separate investments that have been brought to the market by industrial property specialists Harvey at prices of €1.3 million and €995,000 respectively.

The first investment. at Unit 34B Rosemount Business Park in Finglas, Dublin 11, is a quality, modern warehouse and office unit comprising 14,380sq ft (1,336sq m) with a generous gated and fenced yard to the front. The property was recently refurbished to a high standard and benefits from a 10m clear internal height and both level-access and dock-level loading doors.

The unit is let to Richard Austin Alloys which is one of the UK’s largest aluminium and stainless steel stockholders. The lease is guaranteed by the UK parent company offering excellent financial security. Let on a 12-year lease from April 2018, the current passing rent of €99,000 equates to just €6.88 per sq ft (€74 per sq m) which is well below market level. There is both a market rent review and tenant break option in April 2024. The break option notice must be exercised at least 12 months in advance. The asking price of €1. 3 million equates to a net initial yield of 7.1 per cent.

Metal decking

The second investment, Centro House on Bluebell Avenue, Dublin 12, is an industrial/warehouse and office unit comprising 17,179sq ft (1,596sq m) with a shared side yard. The roof has been overlaid with metal decking and provides quality, bright accommodation.

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The property is included in an area that is proposed to be rezoned to “Regen” by South Dublin County Council. Uses permitted under this zoning class include residential, housing for older people, residential institution, offices, hotel/hostel, motor sales outlet, petrol station, health centre, education etc.

The building is let to Fast Casual Distribution Limited and guaranteed by Eddie Rockets (Ireland) Limited, providing excellent financial security. Let on a 10-year lease from October 2018 at an annual rent of €95,000, there is both a market rent review and tenant-break option in October 2023. Crucially, the tenant has executed a deed of renunciation which would allow the landlord to regain vacant possession in 2028. The asking price of €995,000 equates to a net initial yield of 8.8 per cent.