Paris-headquartered investor Remake Asset Management has made its first acquisition in the Irish property market, paying €9 million for an office investment in Dublin city centre.
The subject property – 14-16 Lord Edward Street – comprising 1,315 sq m (14,156 sq ft) of office space distributed across nine suites, is fully let and producing €589,500 in annual rental income.
Some 68 per cent of the passing rent is derived from local authority/government-backed occupiers. The office tenants include the Irish Film Board, Dublin City Council, Gradireland and Heneghan Peng Architects.
With a stable cash flow in place and a weighted average unexpired lease term (WAULT) of just under five years, Remake stands to secure a return of about 6 per cent on its investment.
The sale of the property comes just over seven years on from its acquisition for €7.1 million by its outgoing owner, an American investor. The price paid on that occasion represented a 16 per cent premium on the building’s then guide price of €6.1 million.
At the time the investment had a WAULT of 2.09 years and a total rental income of €457,917 annually.
Since then there have been numerous regears and lettings to existing and new tenants within the property, the combination of which increased both the WAULT and the annual rental income to their current levels.
Developed originally in 1915, 14-16 Lord Edward Street occupies a prominent corner site fronting Dame Street and leading on to the junction of Christchurch Place in Dublin city centre.
The subject property comprises a period building converted into contemporary offices in 2007. The accommodation extends to a total floor area of 14,156 sq ft across nine office suites and has a lift serving all floors. The office suites range in size from 845 sq ft to 3,067sq ft.
Damien McCaffrey of BNP Paribas Real Estate advised Remake Asset Management on its purchase while Brian Shields of JLL handled the sale on behalf of the vendor.