The strong demand evident right through 20
14 for secure property investments is expected to be repeated as the new season gets under way with the planned sale of a high-yielding office investment in the south Dublin suburb of Dundrum.
Adrian Truick of Knight Frank is quoting €5.75 million for Block C in Dundrum Office Park which will give the purchaser an attractive return of 12 per cent.
The three-storey modern block is let under two co-terminus 25-year leases from 2001 to BT Communications at a rent of €718,669 per annum. The leases provide for upward-only rent reviews and have a tenant break option in 2018 subject to the payment of a 12 months rental penalty.
A further €27,000 per annum is generated from two roof top communication masts, bringing the overall income to €745,669.
The detached office building is finished to third generation standards and has a floor area of 2,229sq m (24,000sq ft).
It has a flexible layout allowing it to be split into two self-contained offices with separate access and services.
There is a reception, lift and toilet block at each end of the building.
It was recently upgraded and the tenant’s fit-out now includes a staff restaurant on the top floor as well as a board room, communications room and break out areas on each floor.
BT Communications Ireland Group is part of the BT Group, one of the world's leading provider of communications solutions and services operating in 170 countries. The Irish company had turnover of €438 million in 2013.
The office park is located in the affluent suburb of Dundrum and is within 5.5km from the city centre.
Other tenants in the Dundrum park include John West, Milestone Aviation, Car Trawler and chartered accountants MBSL.
A fairly similar office investment in the park was recently purchased by Green REIT.