Agent Colliers says it expects the sale of Millbank House, a contemporary four-storey, over-basement office building in the Sandyford Business District in South Dublin, to appeal to what it terms as “opportunistic buyers in the current market”.
Located on Arkle Road, the subject property, which is occupied by two tenants at present, is being offered to the market at a guide price of €3.9 million. Should a sale proceed at that level, the purchaser would stand to secure a net initial yield of 6.44 per cent after allowing for standard purchaser’s costs of 9.96 per cent and a low capital value of €170 per sq ft, which is substantially below the building’s replacement cost.
Millbank House comprises a four-storey, over-basement office building extending to a gross internal area of 22,848sq ft, along with 40 basement car-parking spaces. The building has open-plan floor plates which range in size from 4,000sq ft to 5,500sq ft.
The building is currently occupied by two tenants. Pro Rugby Championship DAC, acting as general partner of Pro Rugby Championship LP, hold a 10-year lease from 2017, expiring in December 2027. The passing rent in this case is €141,480 per year. The second tenant, Mundipharma Pharmaceuticals, hold a 20-year lease from 2007 expiring in October 2027. The passing rent here is €134,875 per year (with an outstanding rent review from 2022). The weighted average unexpired lease term (WAULT) is just more than four years.
While Millbank House will provide an immediate return of 6.44 per cent, there is scope according to the selling agent for a reversionary yield of 12.4 per cent upon letting the vacant offices, after allowing for standard purchaser’s costs of 9.96 per cent.
The subject property occupies a high-profile position on Arkle Road with excellent profile on to Blackthorn Road. The Luas Green line is located just 250 metres from the property and provides regular access to Dublin city centre and the surrounding suburbs.
Sandyford Business District is home to a number of global companies including Microsoft, Vodafone, Google, Mastercard and Meta.
“Millbank House, will appeal to both investors and owner-occupiers, looking for excellent quality office accommodation in Sandyford, arguably Dublin’s most successful out-of-town office destination,” Michele McGarry of Colliers said.
“The quality of the tenants providing very secure income for just over four years, coupled with the option of occupying or letting the vacant floors, will make Millbank House desirable to investors and owner-occupiers alike.
“The guide price of €3.9 million, which equates to €170 per sq ft, is substantially below replacement cost, and will appeal to opportunistic buyers in the current market”.