An unnamed investment company has acquired three interconnecting office buildings and a purpose-built light industrial unit at Ballycoolin Business Park in Blanchardstown, Dublin 15.
Colm Luddy of agent CBRE handled the estimated €24 million off-market deal for the US business services company Xerox.
The four buildings are occupied by PayPal, the worldwide online payments system, at a rent of €2,196,185, which will show a net yield of 9 per cent. Office rents in all four buildings average about €l4 per sq ft, while industrial rents are fixed at €11 per sq ft.
The overall selling price of the portfolio will have been influenced by the fact that the leases on all four buildings are subject to rent reviews in 2019 and include break options in 2024. and the fact that Ballycoolin is better known as an industrial park than an office venue may also have curbed investor interest in it.
The three interconnecting office buildings were completed more than 20 years ago and have an overall floor area of 13,249sq m (142,606sq ft). External walls have aluminium panels with bespoke Brise Soleil features. There is a large canteen on the ground floor of Block 4 and an additional seating area outside as well as a 600-space car park.
Building 2 was developed as a light industrial unit with a floor area of 2,624sq m (28,248sq ft). The original block had a two-storey office to the front with a modern warehouse to the rear. The ground floor offices as well as part of the warehouse have been converted to office use for PayPal.
Part of the building, extending to 1,142sq m (12,202sq ft), is vacant. The block stands on a largely undeveloped site of 6.9 acres with obvious development potential.