Half full Clonskeagh office block for €5.25m

A PARTIALLY occupied office building at Beach Hill Office Campus in Clonskeagh, Dublin 14, which goes on the market today, is expected to appeal both to investors and owner-occupiers.

Joint agents Finnegan Menton and Jones Lang LaSalle are quoting €5.25 million for Beaver House, a high quality block with a floor area of 2,739sq m (29,480sq ft) and 90 car-parking spaces.

Nicholas Corson of Finnegan Menton said that after receiving enquiries from investors and a number of companies looking for their own headquarters the owners had decided to offer the block for sale.

The advantage for those looking for a HQ was that they could use the income from the let portion of the block and avail of a heavily discounted price on the vacant space.

The building is 45 per cent let to the US multinational company Maxim Integrated Products (MIP) which is paying a rent of €251,000 per annum for 1,226sq m (13,200sq ft) under a lease which has another eight years to run with a break option in 2016.

MIP is listed on the Nasdaq, has 9,300 employees and had worldwide revenues of $2.5 billion in 2011.

At a selling price of €5.25 million, Beaver House will provide a yield of between 9 and 10 per cent on the rented space and a sale value of only €1,722 to €1,883 per sq m (€160/€175 per sq ft) on the vacant area of 1,514sq m (16,300sq ft) including 58 car-parking spaces.

Beaver House is owned by a family trust run by Co Kildare developer Pat Conlan and managed by Tameric Investments.

The building was previously occupied by Ericsson and was completely refurbished in 2010. MIP took a lease on the entire second floor in that year and in 2011 expanded into part of the first floor.

Beaver House adjoins Boole House, a 3,901sq m (42,000sq ft) block occupied by LM Ericsson, which was bought as an investment last year by the Layden Group for €9.25 million.

Nicholas Corson said two incentives announced in the budget – reducing stamp duty from 6 to 2 per cent and introducing a capital gains tax waiver on properties bought before the end of next year and held for seven years – had already triggered renewed interest in the Dublin office market by both investors and owner-occupiers.