Investors looking for a long income office investment opportunity are likely to be interested in the upcoming sale of the Eir headquarters at Citywest. The telecom group opted to move its headquarters from Dublin city centre to the property back in 2018.
The property, at the Citywest Business Campus in Dublin 24, is being brought to market by CBRE by way of private treaty at a guide price of €37 million. This reflects a net initial yield of 5.47 per cent, with two fixed uplifts increasing the yield to 6.29 per cent in 2025 and 7.24 per cent in 2030.
The sale of the Eir Network Management Centre offers an opportunity for investors to acquire a prime office building, which is of strategic importance and offers a secure long income profile to an exceptional covenant. The property comprises a three-storey modern office building, with single-storey laboratories and extends to 7,199sq m (77,490sq ft) with 260 surface car spaces.
The building is the headquarters of Eir, and is thus mission critical to the communications company’s operations in Ireland. The French-owned telecoms group decided in 2018 to move its corporate headquarters from the Heuston South Quarter in Dublin’s city centre, to the Citywest Business Campus, in a move that would reportedly cut its rent bill by more than €10 million a year.
The building is fully let to Eir on a 25-year full repairing insuring (FRI) lease from September 2010 with no break option, offering an unexpired term certain of 13.5 years. The passing rent is €2,230,000 a year and is subject to fixed uplifts upon review in 2025 and 2030. The rent will increase by 32 per cent, or €720,000, over the remaining term certain.
The Eir Network Management Centre is situated along Bianconi Avenue on the western perimeter of the Citywest Business Campus, and predominately overlooks the N7 Naas dual carriageway. The building benefits from excellent connectivity, fronting one of the busiest national routes and is also served by the Luas Red Line and a number of Dublin Bus routes providing direct access to the city centre. The immediate area has been subject to large-scale residential development in recent years, which has added to the population of the area and its services and amenities.
Michelle Farrell, a surveyor in investment properties with CBRE Ireland, said: "The sale of the Eir Network Management Centre offers an exceptional investment opportunity to acquire a high-quality asset with the benefit of secure income for the next 13 years in a prime location."