Commercial Property

Reflector office block in docklands expected to fetch more than €160m

Preferred bidder is expected to emerge shortly

The Reflector building on Hanover Quay will produce an annual rent roll of about €7 million with a weighted average unexpired lease term of 12 years.

Justin Comiskey
Wed Apr 10 2019 - 06:00

Six parties are believed to be chasing the Reflector office block on Hanover Quay in the south Dublin docklands with the deadline for bids to be submitted having passed at 1pm last Friday.

A preferred bidder is expected to emerge shortly in what is one of the most closely watched sales of the year so far in the Dublin investment market. One source suggested bids well above the €160 million are likely to have been submitted.

Among those understood to be circling the office block are US real estate giant Hines, German funds Union Investment and Patrizia, Italian insurer Generali and a number of Asian investors.

The Reflector came on the market in February at €155 million through joint agents Savills and CBRE. The agents declined to comment on how the sale was progressing.

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Owned by Park Developments, the Reflector will produce an annual rent roll of about €7 million with a weighted average unexpired lease term of 12 years. Given the asking price, this would suggest a net initial yield of 4.2 per cent.

The six-storey over-basement building has 11,250sq m (121,089sq ft) of office space, 329sq m (3,546 sq ft) of restaurant space and 34 car-parking spaces.

Tenants include software provider LogMeIn, Airbnb, and web designer Wix.

Savills is in active discussions for letting the vacant office space of 2,045sq m (22,000sq ft) across two floors and is quoting €646 per sq m (€60/sq ft) for this. Recent lettings in the block ranged from €597-€673 per sq m (€55.50-€62.50/sq ft).

The Reflector is part of an almost fully developed docklands neighbourhood that’s home to a growing list of technology companies and law firms.

It was developed by Park Developments, which acquired the site in 2004. Construction began in 2016 with Sisk as the main contractor and finished last year.

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