A well-located office investment with a strong rent guaranteed for another eight years comes on the market today in the busy south Dublin suburb of Blackrock.
Paul Callanan of Savills is seeking in excess of €7.5 million for the Permanent TSB office which has a high profile on to the Blackrock bypass at Carysfort Court.
Permanent TSB’s lease of the 17-year-old building is not due to run out until 2022. In the meantime the company is paying a rent of €540,000 per annum for the entire building until 2016, when the rent is due to rise by increments of €10,000 per year until 2021 when it reaches €600,000.
The three-storey over basement block provides high quality, open plan accommodation extending to 2,741 sq m (29,515 sq ft). There are 51 car parking spaces at basement level. The building stands on a site extending to 0.48 of an acre and is particularly bright internally because of its dual aspect on to Carysfort Avenue and the N31 Blackrock bypass. Whoever buys the building can bank on a good initial return on their investment and possibly renegotiate the lease terms with a view to extending the rental period with Permanent TSB.
The €7.5 million being sought for the property will show a net initial yield of 6.9 per cent and a valuation of €2,734 per sq m (€254 per sq ft). “At that price the investment will look very attractive to savvy investors who are anticipating further market growth in the Dublin office sector over the coming years,” said Callanan.
