A little known Irish insurance company has outbid five other investors to buy the modern office building rented by An Bord Pleanála at City Square on Marlborough Street in Dublin 1.
The successful bidder is to pay €21 million for the investment – €3 million above the guide – which will show a net return of 5.9 per cent.
The seven-storey grade A block was built in 2002 and extends to 3,423sq m (36,856sq ft) over a basement car park with 22 spaces.
It has been occupied by the planning appeals board since its construction and benefits from a feature first-floor atrium with a café and meeting area.
There is also a large conference room on the ground floor.
The 25-year, full repairing and insuring lease has another 11 years to run, until January 2027. The passing rent of €1,270,820 works out at €366 per sq m (€34 per sq ft) and is subject to five yearly rent reviews with the next one due next January.
Nicholas Corson of Finnegan Menton, who handled the sale with Ciara Horgan of DTZ Sherry FitzGerald, said the investment had attracted interest from local and international funds and property companies as well as a number of private investors and syndicates.
The State-backed covenant and the quality of the building were the key selling points.
Kenneth Rouse of BNP Paribas Real Estate advised the purchaser.
