Two office blocks with retail units in Dublin 1 for €15m

Two office blocks with four ground-floor retail units in Dublin 1 are quoting more than €15 million through agent CBRE. This would reflect a net initial yield of 5.53 per cent.

Blocks A and B at Joyce's Court on Talbot Street are producing a rent roll of €866,948 per annum with two-thirds of this coming from tech firm Smartbox.

The two blocks have a combined 5,066sq m (54,531sq ft) of Grade A space and 31 underground car-parking spaces.

Block A extends to 2,627sq m (28,282sq ft) over five floors and is occupied by Smartbox under a 20-year lease from October 2015. The tenant has a break option in October 2025 and pays rent of €570,006. This equates to €215 per sq m (€20 per sq ft) so there is obvious potential to increase this given the city-centre location.

The six-storey over basement Block B has 2,439sq m (26,249sq ft) of space and is multi-let to a number of tenants including Veeam Software Ireland Ltd, Kitman Labs Ltd and the Dyslexia Association of Ireland. The average rent across this block is €161 per sq m (€15 per sq ft) – again on the low side, so there is strong reversionary potential here for investors.

Three of the four retail units in the sale are vacant and offer a combined 691sq m (7,438sq ft). Once let, they could increase the rent roll.

The blocks offer easy access to Connolly Station (Dart and Luas) and Busáras.

Kyle Rothwell of CBRE says the investment offers a reversionary yield closer to 7.7 per cent. "Capital values of €900 per sq ft are being achieved 500 metres away in the IFSC, so Joyce's Court offers an excellent opportunity to increase the capital value of the investment," says Rothwell.