Well-located IFSC office building for sale for €2.4m-plus
Four-storey mid-terrace block currently produces rent roll of nearly €142,000
The two tenants at 4 Exchange place, Dexia and Qatar Airways, are paying well below the top rents in the IFSC
With Dublin’s IFSC in constant demand by investors, agent Cushman & Wakefield expects strong interest in a particularly well-located office investment at 4 Exchange Place, which goes for sale on Wednesday by private treaty.
Clive Roche of the agency is seeking in excess of €2.4 million for the modern, mid-terrace, four-storey office building with two car parking spaces, which is producing an annual rental income of €141,822.
The 355sq m (3,819sq ft) of high-quality floor space is located within the larger Exchange Place block and will show a return of 5.45 per cent after allowing for standard purchaser’s costs of 8.46 per cent. The ground to third floors were recently refurbished and are accessed via a shared internal lobby and a lift serving all floors.
The largest of the two office suites going for sale with two car parking spaces is located on the ground, first and second floors and is rented by Dexia, the State-owned Belgian-French banking institution, at an annual income of €103,322. The 10-year lease runs from September 2017, and includes a tenant break option in August 2021, subject to six months’ notice and a rent penalty.
The remaining 91.59sq m (986sq ft) on the third floor is rented by Qatar Airways via a four-year and nine-month lease from December last at an annual rent of €38,500. The airline has a break option at the end of November 2019.
Investors interested in the well-managed office investment will be only too well aware that after allowing for the car parking facilities, the two rents break down at €366 per sq m (€34 per sq ft) on the Dexia suite and €420 per sq m (€39 per sq ft) on the Qatar space.
Both figures are well below the top rents in the IFSC, currently in the region of €565 per sq m (€52.50 per sq ft).