Four Naas office investments for €35.5m

Office Market: There should be plenty of interest in four office investments in Naas, especially as some are let to high profile tenants, writes Jack Fagan

The new owners of Millennium Park at Oberstown, Naas, are to sell four separate office investments which are let to a number of tenants, including the Health Service Executive and the Office of Public Works.

Robert Murphy of CB Richard Ellis and Darac O'Neill of Colm McEvoy Commercial are suggesting a price of €35.5 million for the four buildings which have a combined floor area of almost 9,000sq m (96,876sq ft).

Alternatively, the buildings will be sold in four separate lots.

The four businessmen known as the Western Property Alliance, who paid €320 million for the park, are planning an extensive development programme that will comprise retail facilities, residential, industrial, leisure and amenity uses.

The widening of the N7 dual-carriageway to three lanes has greatly reduced the commuting time from Naas to the city and the M50, according to the agents.

The highest value investment, Oak House, which is expected to sell for around €16 million, is let to the Health Service Executive on a 25-year lease from last July at a passing rent of €857,101 per annum.

Oak House has 3,641sq m (39,195sq ft) of space and the rent equates to €221 per sq m (€19.68 per sq ft).

There is no provision for breaks in its lease.

Ash House, which has a guide of €7.5 million, is let to Tuchenhagan Ireland GmbH on a 20-year lease from last July at a rent of €378,788 per annum - the equivalent of €221 per sq m (€20.59 per sq ft).

The tenant has a break option in year 10.

The ground floor is currently vacant while the building has 1,784sq m (19,206sq ft) of space in total.

Hazel House, with a guide of €6.25 million and 1,784sq m (19,205sq ft) of space, has two leases in place.

The first floor is let to Millennium Park under a new 25-year lease with a break option in year 10.

The current rent of €111,500 breaks down at €182 per sq m (€17 per sq ft).

The second floor is let to Rentokil Initial Ltd on a 20-year lease from November, 2005, at a rent of €123,169 per annum - €182 per sq m (€17 per sq ft).

The fourth investment going for sale - Willow House with 1,785sq m (19,219sq ft) of space - has a guide of €5.75 million and a number of tenants, including Harlequin Healthcare Properties, which has a lease of nine years and 11 months.

The rent is €54,496 per annum - breaking down at €182 per sq m (€17 per sq ft). The first floor is let to the Office of Tobacco Control on a four years and 10 months lease at €119,554 per annum.

The OPW occupies the second floor on a 20-year lease from September, 2005, at a passing rent of €119,163. The tenant has a break option in year 10.

A small part of the ground floor - 300sq m (3,229sq ft) - is currently vacant but under offer.