The combination of immediate rental income and significant reversionary potential should help to drive the sale of three logistics units at Dublin’s Airways Industrial Estate.
The units are fully let with 62 per cent of the rental income coming from State agencies, namely the Department of Justice and Equality and the Office of Public Works. The third unit is let to global logistics and supply chain specialist, FedEx. The sale offers the prospective purchaser annual rental income of €671,273.50 from April 1st, 2022, along with the added benefit of upwards-only rent reviews that promise a reversionary yield of up to 8.1 per cent.
Taken together, the three units extend to 11,800sq m (127,000sq ft) that could accommodate an occupier with a growing team and a weighted average unexpired lease term of approximately 2.6 years. The portfolio is being offered to the market by agent JLL at a guide price of €11 million.
The current zoning objective under the Fingal Development Plan 2017-2023 is GE (general employment), which aims to provide opportunities for general enterprise and employment in the area. Potential investors may be able to develop the units for industrial purposes such as bulk distribution, light industrial, manufacturing and offices. In the longer term, there is potential, according to the selling agent, JLL, to develop modern units on the existing properties’ 2.4 hectare (6 acre) site.
The Airways scheme is a well-established industrial estate with an occupier line-up that includes DPD, Hugh Jordan & Co Catering Supplies, Hotpoint and Indesit. There are several other well-established business parks in the immediate area such as Woodford Business Park, Collinstown Business Park, and Furry Park Industrial Estate.
Airways Industrial Estate is well located adjacent to the M50 and M1 motorways, and just a five-minute drive from Dublin Airport.
Commenting on the sale, Max Reilly, senior director at JLL’s capital markets division said: “These assets are significant in terms of their future potential for last-mile logistics, combined with the existing Government income from mission-critical uses. The buildings sit on approximately 6 acres and represent both a longer-term development opportunity and a short-term refurbishment opportunity that would increase their rental income.”