Offices in Blackrock Business Park for €13.5m

Three high-quality office buildings in Blackrock Business Park in south Dublin are expected to attract considerable interest from Irish and overseas investment funds when they are offered for sale from today for more than €13.5 million.

Savills is handling the marketing of the investment for Lone Star, which bought the three buildings as part of a loan book.

The distinctive buildings are part of nine office blocks in Blackrock, one of the best located business parks in the south Dublin suburbs.

The three units for sale with an overall floor area of 4,645 sq m (50,000 sq ft) are fully let to eight tenants including those involved in finance, IT, helicopter fleet management and healthcare.

Hair Restoration Ltd occupies one of the three blocks, accounting for 35 per cent of the overall rental income.

The company has 7.5 years to run on its lease. The portfolio is currently producing an overall rent of €1,015,653 and has a weighted average unexpired lease term of eight years and four years to a break.

The tenants also have the use of a basement car park with 70 spaces.

Two of the three office blocks have passing rents of €213 per sq m (€19.80 per sq ft|), offering an attractive reversionary potential to savvy investors who envisage continued rental growth in the south Dublin suburbs over the next two to three years

Savills says that the investment will provide extensive asset management opportunities across the portfolio including lease restructuring, upcoming rent review negotiations and development of an additional penthouse level on Block 4.

Permission was granted in 2007 for this 424.63sq m (4,571sq ft) penthouse and many of the building services required for this additional floor are already in place.

Blocks 3 and 4 are interconnected, offering impressive office accommodation which is accessed via a shared reception.

Block 5 is a striking stand alone property providing bespoke medical and office accommodation.

Each of the blocks is finished to a high standard to include a mix of natural stone, aluminium cladding and glazing on the external elevations.

Kevin McMahon of Savills, who is handling the sale, said the fully let buildings will offer investors a genuine opportunity to capitalise on the continued rental growth in the suburbs and achieve an extremely attractive reversionary returns at a significant spread above prime city centre yields.

The three buildings going for sale were built in 2007 as the latest additions to the park.

An Post has a large sorting office on the western edge of the park.

Blackrock Dart station is about 600 metres away.