Two office blocks rented by State agencies guiding €19m

Four-storey buildings with combined area 35,000sq ft produce rent of €1.1m-plus

Two modern office buildings close to the main entrance to the Phoenix Park on Parkgate Street, Dublin 8, and rented by two Government agencies are to be offered for sale at a guide price of €19 million.

Turley Property Advisers are handling the sale of the two blocks, which were acquired by an Israeli investment fund in 2014 for a slightly more than €14 million.

Block C and D at Parkgate Business Centre have a combined floor area of 3,298sq m (35,499 sq ft) and produce a rental income of €1,109,200.

The four-storey Block C extends to 1,469sq m (15,817sq ft) and is let to Transport Infrastructure Ireland at a rent of €494,220. The rent roll includes a fee of €2,000 for each of the 17 car parking spaces on site. The office rent works out at €29.09 per sq ft and the lease does not run out for another 10 years.

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Turley estimates that the rent should rise to €600,345 (or €35 per sq ft) at the next review in September 2021. The charges should also include a new figure of €2,750 for individual parking spaces.

The four-storey Block D has an internal floor area of 1,829sq m (19,682sq ft) and is rented by the Health Service Executive on a lease with 7.47 years to run. The rent roll of €615,000 reflects €29.31 per sq ft and €2,000 for each of the 21 car parking spaces.

Modern fit-outs

Turley says there is scope to increase the rent to €746,620 at the next review in December 2021, reflecting a rent of €35 per sq ft, and €2,750 for the parking spaces.

The two office blocks have modern fit-outs, including raised floors, suspended ceilings, air conditioning and a mixture of open plan and cellular accommodation. Each block has 10 passenger lifts.

Parkgate Business Centre is located on the opposite side of the river Liffey from Heuston Station and within yards of the landmark Criminal Courts. Kevin Daly of Turley Property Advisers said the sale provided an excellent opportunity to acquire two well-located office blocks let to State agencies with a weighted average lease period to run of 8.74 years.

“This is a rare investment opportunity offering two Government-strength covenants, long-term secured income and reversionary potential.”