Northern Cross office building and land for €10m

Agents DTZ Sherry FitzGerald is expecting considerable interest in an office investment at the Northern Cross on the Malahide Road in Dublin 17 when it goes for sale later this week at over €10 million. The initial yield will be 9.04 per cent after purchasing costs.

Newenham Court, a grade A building completed in 2007 by Walls, forms part of a larger development which has attracted a range of leading companies.

The five-storey over basement block extends to 4,511sq m (48,558sq ft) and is let to the pharmaceutical company Mylan Ireland at €737,358 per annum.

Unusually, the sale also includes an adjoining development site of 0.79 of a hectare (1.952 acres).

Mylan has the use of 148 basement and surface parking spaces under its original leases and pays an additional rent of €207,000 for the use of a further 207 spaces on the development site.

Newenham Court is fully occupied by Mylan Ireland under two separate leases. The second and third floors are let under a 10-year lease from March 2012, and the ground, first and penthouse floors are let under an additional 10-year lease from the end of 2014. The tenant has the option to terminate both leases on November 30th, 2019, or to terminate their occupation of the ground floor only on the same date.

The planning for car parking on the development site is due to expire in 2019.

Access

Jane Dolan of DTZ Sherry FitzGerald describes the investment as “an exciting opportunity to acquire a high yielding modern office building with excellent covenant and the benefit in the short term from improving infrastructure and rental growth.”

Northern Cross is now a popular suburban office venue 3km from Dublin Airport and 8km from the city. It is close to the junction of the Malahide Road and the N32, which provides direct access to the M1/M50 motorway interchange. Other tenants in Newenham House include international banker and financial services company JP Morgan, healthcare specialists Cerner Corportion and information analyst Experian.