AN OVERSEAS investor has agreed to pay around €10 million for a modern office block in Dublin’s IFSC. The deal will show a yield of around 8.7 per cent.
Duncan Lyster of Lisney had been seeking around €11 million for Plaza 4, one of a number of blocks that form part of Custom House Plaza. The five-storey building is rented by four financial institutions under 25-year leases which have over 10 years to run.
The 1,814sq m (19,535sq ft) block has 22 car-parking spaces at basement level. The rent roll of €996,925 equates to €505 per sq m (€47 per sq ft) which is stronger than the going rate in the docklands. A rent review is due later this year. The block was developed in 1997 by the late Brian Rhatigan as part of Custom House Plaza, an impressive scheme around a glazed atrium which serves as an entrance foyer to six office blocks. Plaza 4 was originally bought by a group of investors who were in a position to cash in on the available tax incentives.
The two German financial institutions, Aareal Bank and Hanover, rent a combined space of 754sq m (8,125sq ft) while Anglo Irish International Services is renting 398sq m (4,292sq ft).
The two top floors extending to 657sq m (7,080sq ft) are occupied by Permanent TSB Finance.
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