The combination of immediate rental income from a strong tenant line-up and opportunities for leasing and asset management is expected to drive the sale of a well-located and established office investment in Dublin's Eastpoint Business Park.
Block P1 is being brought to the market by agent Savills at a guide price of €12.5 million, offering the prospective purchaser a net initial yield of 6.72 per cent (after standard purchaser's costs) and a capital value of €292 per sq ft.
The subject property briefly comprises a standalone office block of 42,865sq ft (3,982sq m) distributed over four floors, along with car parking for 61 cars.
The building is 73 per cent let at present with a tenant line-up that includes national and international companies such as Tedcastles Oil Products, cloud computing and virtualisation technology company Citrix Systems International, and IQVIA, a global provider of advanced analytics and human data science technology,
The investment is producing a total rental income of €923,517 per annum, and has a weighted average unexpired lease term (WAULT) to break of approximately 2.5 years and a WAULT to expiry of in excess of three years. The building has car parking provision for 61 cars.
The sale of Block P1 comes just over five months after the disposal by agent Knight Frank of the adjacent Block P2 to a UK-managed German fund for €15 million. While the 49,366sq ft (4,586sq m) building secured the equivalent of €303 per sq ft, this higher price was underpinned by its being fully let to Virgin Media on a 25-year full repairing and insuring lease from December 2000.
Commenting on the opportunity presented by Block P1, Fergus O’Farrell , director at Savills investment division, says: “This is a high quality office building, with strong annual rental income. In addition to the attractive existing tenant base, the office building also offers excellent asset management potential, with a number of opportunities to grow the asset’s revenue-generating capabilities. Eastpoint Business Park is superbly located and a well-established office location, and we expect there to be significant interest in this asset.”
Located within a short distance of Dublin's north docklands, Eastpoint is home to a range of global tech occupiers including Google, Oracle, Citrix and Fineos, as well as corporates such as Deutsche Bank and Enterprise Ireland.
Among the scheme’s attractions are its access to public transport. The park offers a dedicated shuttle bus service to both the Luas stop at Point Square and the Dart station at Clontarf Road.