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South Dublin investment with residential potential seeks €1.5m

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

The Merville Road scheme occupies a high-profile position beside the N11 dual carriage way in Stillorgan.

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.”

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