£4m-plus expected for offices let to Microsoft

A two-year old office investment at Sandyford Industrial Estate, Dublin 18, is expected to make in excess of £4 million when it is sold through the Gunne agency. The 18,358 sq ft building with 454 car-parking spaces is let to Microsoft on a 20-year lease at £275,000 per annum. Ronan Webster of Gunne says that with normal acquisition costs, a price of £4 million would reflect a net initial yield of 6.3 per cent. The building is held in a special purpose company which could be purchased also, effecting significant stamp duty savings which could increase the yield to over 6.6 per cent. Gunne says the rental value of the property could be over £300,000 per annum so the return will improve after the first rent reviews. The building occupies a high-profile location on Ballymoss Road and fronting on to Blackthorn Avenue. The proposed LUAS light rail terminus is due to open opposite the block.