Park West office investment at €3.8m offers buyer 8.37% yield

Investors looking for a well-located office investment with the benefit of immediate rental income into the medium term may be interested in the opportunity presented by the sale of Block 8 at Park West.

Located at the heart of the Dublin 12 business and technology campus, Block 8 comprises 2,266sq m (24,387sq ft) of flexible office accommodation over three floors, together with 32 car parking spaces. The building is fully let to US-headquartered Exela Technologies since 2014, and has almost 3½ years remaining on the lease, at a passing rent of €349,850 a year.

Exela Technologies is a global business processing automation company employing 22,000 people worldwide, with customers in more than 50 countries and offices located across Europe, Asia and north America.

Agent Colliers is guiding €3.8 million for Block 8, which equates to a net initial yield of 8.37 per cent, and a capital value of €156 per sq ft, after allowing for standard purchaser’s costs of 9.96 per cent.

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Block 8 is located within a seven-minute walk of Park West railway station, and benefits from a range of amenities including a coffee shop, restaurant, shops, creche and fitness centre.

The business park is home to a number of high-profile companies including Richmond Marketing and Irish tech unicorn Workhuman, which recently said it has taken additional space in a building adjacent to its existing headquarters in Park West, as it gets ready to increase its headcount in Dublin.

Aoife Murray, who is handling the sale of Block 8, says that the agency has seen an increase in activity both from occupiers and investors in the business park. Companies including Affidea, Lets Get Checked and Fulfill Nutrition, have all taken space in the past 12 months.

In addition, Colliers has recently acquired two off-market investments in Park West on behalf of a private investor for a sum in the region of €5.25 million.