A new benchmark yield for an industrial investment has been set with the sale by Irish Life of 12 income-producing warehouse units near Dublin Airport for £13 million. A Northern Ireland businessman, who bought the portfolio, will get a net initial yield of 5 per cent - something unheard of for a second-generation industrial building. Gunne Commercial handled the sale of the buildings at Airways Industrial Estate in Santry. They have a combined income of £714,500 per annum from a number of leading companies including Telecom Eireann, FA Wyatt, DHL, Team Aer Lingus, Devtec and Business Protection Services.
Ronan Webster, of Gunne, says there is considerable scope to increase the rents when the next reviews arise, mainly in 2000 and 2001. The excellent location close to the airport also offered long-term development and investment opportunities.
Sean O'Neill of Lambert Smith Hampton advised the purchaser.
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