Investors will have a chance to buy a high quality 3rd generation office investment located in Dublin’s docklands with the sale of Block P2 in EastPoint Business Park. The property, which is let under long term leases to the internet and digital television provider UPC, is being marketed by Knight Frank at a guide price of €8.8 million.
The building is located in EastPoint, a development of over 140,000 sq.m. of office space on an attractive landscaped site of 40 acres in the north docks close to Dublin Port, the Point Depot and the IFSC. EastPoint is one of the city’s most successful city centre office developments attracting occupiers including Google, Yahoo, Deutsche Bank, Cisco, Oracle and Whirlpool.
The property, which was developed in 2000, comprises a four storey office block of approximately 4,613 sq.m. (49,645 sq.ft.). Externally the building is finished with double glazed aluminium windows and limestone façade Internally the building is fitted out to full third generation specification, including raised access floors, suspended ceilings with recessed lighting and fully finished lobbies and toilets. The floor to ceiling height is 2.70 metres.
There are 71 car parking spaces providing a very generous car parking ratio of 1 car space per 63.8 sq.m.
The entrance to the building is by full height glazed atrium with a generous landscaped lobby including polished granite floors. Internally, the offices provide adaptable and flexible work space. All floors are H shaped with a central core allowing for sub-division of the floor plate. The lift lobbies on the upper floors overlook the entrance lobby atrium.
The property is let to UPC under a 25 year lease from 5th December 2000 with upward only rents each fifth year. Their lease provides for a tenant break option on the 5th December 2020 subject to a 12 month notice period and a 9 month rental penalty.
The original lease terms have recently been varied, with the tenant extending the break date in return for a rent reduction. Under the revised terms the tenant will pay a rent of €1,016,132 per annum until December 2015, with the rent reducing to €647,276 per annum from January 2016 up to the next rent review date in December 2020.
With a guide price of €8.80 million, the investment will provide an initial return of 11.0%. Following the rent reduction the return will be 7.10%.
With the supply of quality office accommodation in the city centre rapidly declining, the reduced rent, which reflects a rate of only €12.25 per sq.ft, offers considerable scope for growth at the next rent review.
For more information contact Adrian Trueick or Ross Fogarty on 01 634 2466.