Irish Life has secured €14 million from the sale of three industrial units at Airways Industrial Estate in north Dublin. Units 1, 2 and 3, which were forward funded by Irish Life more than 40 years ago, were offered to the market last March at a guide price of €11 million.
The sale of the portfolio saw interest from a wide range of domestic and international parties and secured a large volume of bids. The units have been acquired by a private Irish investor.
Commenting on the completion of the transaction, Deirdre Hayes of Irish Life said: “The strong price achieved highlights the robust demand for Irish logistic assets. This sale represents an important step for Irish Life in modernising and enlarging its industrial portfolio.”
Irish Life is aiming to double the size of its industrial portfolio over the short to medium term and have been very active in the market, having recently forward funded the development of an industrial unit in Vantage Business Park, near Dublin Airport.
Units 1, 2 and 3 Airways Industrial Estate are fully let with 62 per cent of the rental income coming from State agencies, namely the Department of Justice and Equality and the Office of Public Works. The third unit is let to global logistics and supply chain specialist, FedEx. The sale provides the new owner with annual rental income of €671,273.50 from April 1st, 2022, along with the added benefit of upwards-only rent reviews that promise a reversionary yield of up to 8.1 per cent.
Taken together, the three units extend to 11,800sq m (127,000sq ft) that could accommodate an occupier with a growing team and a weighted average unexpired lease term of approximately 2.6 years.
The current zoning objective under the Fingal Development Plan 2017-2023 is GE (general employment), which aims to provide opportunities for general enterprise and employment in the area. The new owner may be able to develop the units for industrial purposes such as bulk distribution, light industrial, manufacturing and offices. In the longer term, there is potential to develop units on the properties’ 2.4 hectare (6 acre) site.
The Airways scheme is a well-established industrial estate with an occupier line-up that includes DPD, Hugh Jordan & Co Catering Supplies, Hotpoint and Indesit. There are several other well-established business parks in the immediate area such as Woodford Business Park, Collinstown Business Park, and Furry Park Industrial Estate.
Airways Industrial Estate is well located adjacent to the M50 and M1 motorways, and just a five-minute drive from Dublin Airport.