Largest Office Block Portfolio offered by Nama

Bloodstone Building on Sir John Rogerson’s Quay – €30m

“Platinum Portfolio”: Nama is offering four prime office buildings in Dublin; The Bloodstone Building on Sir John Rogerson’s Quay; the adjoining Block B, Riverside IV, on Britain Quay; Grand Mill Quay on Barrow Street; and Hume House on Pembroke Road in Ballsbridge, at an asking price of €120m. Knight Frank and CBRE are joint agents on the sale.

Great overseas interest is expected due to the 50% to 60% decline in values in recent years. Although, rents are expected to strengthen due to the rundown of modern office properties in the City Centre, and as a result Irish Funds such as Irish Life, Irish Pension Unit Trust and Green REIT are expected to show interest in one or more of the available office blocks.

This is the largest ever portfolio sale by Nama. Joint receivers Paul McCann of Grant Thornton and Declan Taite of RSM Farrell Grant Sparks are handling the sale for Nama.

Grand Mill Quay has a quoting price of €42.4m for a top grade building in a prime location on Barrow Street, with a floor area of 8,965sq.m (96,500sq.ft) and 109 car-parking spaces by joint sales agents Knight Frank and CBRE. It currently produces a rent roll of €3.59m, with tenants including Willis, Blackrock, Lee Overlay & Partners and Google. This asset would show a return of 8.1%.

The Bloodstone Building has a quoting price of €30 million and is an impressive eight-storey block of 7,720sq.m (83,100sq.ft) in the heart of the south docklands. It currently produces rents of €1.25m from a number of tenants such as SEB Life and LogMeln. 3,251sq.m (35,000sq.ft) is currently available to let, and a fully let block will show a yield of over 7.5 per cent, according to the agents.

Block B has a quoting price of €26.3 million. It is a six-storey building with over 5,480sq.m (59,000sq.ft) of Grade A space. Occupiers include AWAS, one of the world’s leading aircraft leasing companies, and online recruitment firm Indeed.com. The current rental income of €1.445m is secure for up to 8.7 years. Currently 2,787sq.m (30,000sq.ft) is available to let, and when fully let the yield would rise to 8.23 per cent.

The quoting rent for Hume House has been set at €21.5m by joint selling agents Knight Frank and CBRE with the rental income at €1.853m from 7,432sq.m (80,000sq.ft). It comes with 118 car-parking spaces and stands on 0.865 of an acre. Tenants include Bank of Ireland and AIB and the income is secured for up to 10.7 years. The return is due to rise to 9.3 per cent when fully let.

The Hume House adjoins a substantial site which was recently acquired by the Comer brothers. Planning permission was granted in 2010 to demolish Hume House and replace it with a nine-storey block extending to 16,080sq.m (173,081sq.ft).

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