Irish Life pays €33m for high-profile office block at entrance to IFSC
Five-storey over basement investment will show an initial return of 6 per cent
George’s Dock 2 in Dublin’s IFSC: the building comes with 40 car parking spaces as well as a third-generation fit-out including raised access floors, suspended ceiling and recessed lighting
Irish Life will have the option to upgrade George’s Dock 2 (GD2), a high-profile office building at the entrance to Dublin’s International Financial Services Centre, after buying it for about € 33 million. The investment will show an initial return of 6 per cent.
The partially occupied five-storey over basement block extends to 4,042sq m (43,500sq ft) and was owned since 1996 by an investment group, headed by Derek Quinlan, who were able to avail of tax breaks in the early years of the purchase.
Although all the upwards-only leases on the block have another six years to run and equate to about €476 per sq m (€ 44.30 per sq ft) the new owners are unlikely to rush into any refurbishment of the block in the light of lease periods yet to run and the prospects of further rent increases in 2016. About 40 per cent of the floor space has been empty since the main tenant, Susquehanna, a privately held global investment company, moved to its newly acquired former headquarters of AIB International at the front of the IFSC.
Another 30 per cent of GD2 is held by a subsidiary of the Dutch-owned Rabobank Group, which managed to find a replacement tenant in De Lage Landen, the global provider of leasing and business and finance solutions.
Martin O’Reilly, Irish Life Investment Managers, commented: “This is an excellent acquisition for Irish Life as it dovetails with our off-market acquisition last year of the adjoining George’s Dock 3 office block. The building offers strong medium-term yield and potential asset management angles to add value.”
GD2 comes with 40 basement car parking spaces as well as a third-generation fit-out including raised access floors, suspended ceiling and recessed lighting.