Irish Life has bought a rented office building at 87-89 Pembroke Road, Dublin 4 opposite the former Jurys Hotel, for €15.5 million. The investment will show a net yield of 7.15 per cent.
€200 million has been allocated form the State’s property fund for a range of key investments over the next year at heavily discounted prices by Nama and the banks. Although, there is now intense competition from overseas buyers for these discounted properties which will make it tough for Irish Life to deliver on buying high-quality office properties in the city with the demand for space remaining heavy.
After over 5 years of continuous decline to a 65% drop, commercial property values in the Dublin area are finally showing signs of stabilising and increasing.
The office property is a 2,790sq m (30,000sq ft) three-storey over-basement block at 87-89 Pembroke Road, Ballsbridge. Adrian Trueick of HT Meagher O’Reilly Knight Frank handled the sale of the Pembroke Road building on behalf of the former Anglo Irish Bank and managed to secure €1.5 million more than the guide price. Irish Life was represented by CBRE.
The overall rent of €1,158,000 is mostly paid by the Bank of Ireland under two long-term leases. The American Embassy and the Irish Computer Society rent out the remainder of the building space.
87-89 Pembroke Road was part of a larger property holding which was owned by Bernard McNamara and David Courtney when they and other developers failed to get planning approval for the redevelopment of the centre of Ballsbridge.