South Dublin investment with residential potential seeks €1.5m

Sale of well-located Stillorgan office portfolio offers purchaser net initial yield of 9.2%

Joint agents QRE Real Estate Advisers and online auction specialists BidX1 are guiding a price of €1.5 million for an investment/development opportunity (subject to planning permission) in Stillorgan, Co Dublin.

The sale is in one or more lots, and comprises two properties located in a high-profile position overlooking the N11 dual carriage way at the junction of Merville Road and St Brigid’s Church Road.

Number 1 Merville Road (lot 1) is a vacant two-storey detached office building extending to 226sq m (2,423sq ft). The property is situated on a self-contained site of approximately 0.14 acres with direct access off St Brigid’s Church Road. The site would be suitable for residential development subject to planning permission and has a guide price of €650,000.

Numbers 2-20 Merville Road (lot 2), comprise of five interconnected two-storey terraced office units which extend to an overall area of 922sq m (9,939sq ft). This property is let under two 20-year licence agreements to HR Holfeld (Engineering) Ltd from March 2010 at a combined rent of €85,956 per annum, providing the purchaser with about 9.5 years term-certain income. The selling agents are guiding a price of €850,000 which reflects a net initial yield of 9.2 per cent after standard purchasers’ costs.


Single lot

The entire is available as a single lot for €1.5 million or on an individual lot basis.

Brian Kelly of QRE and Gillian Earley of BidX1 say: “Due to the residential zoning, the purchaser has an opportunity to develop the site into a residential scheme, subject to planning permission. Given the location of No 1 Merville Road in an affluent area of south Dublin, we expect to see demand for a residential scheme or alternatively student accommodation. There is a QBC [quality bus corridor] on the doorstep which provides quick access to both UCD and Dublin city centre. While advancing a planning scheme, the office itself can be let on a short-term basis.

“And at a time when interest rates are in negative territory, a term-certain income of 9.5 years and a net initial yield of 9.2 per cent is extremely attractive. We expect to see good interest in the entire offering.”

Ronald Quinlan

Ronald Quinlan

Ronald Quinlan is Acting Property Editor of The Irish Times