An office development with a very attractive potential yield of 13.5 per cent has been offered for sale in south Co Dublin.
Block B of Nutgrove Office Park, Churchtown, comes to the market after a light refurbishment with a guide price of €5 million – some €2 million short of the price asked in June 2018, when it was offered for sale by another agent.
Block B comprises three buildings that are available with vacant possession and jointly extend to about 40,000sq ft. The buildings come with 45 surface car park spaces.
Two of the three buildings, B2 and B3, which interconnect with block B1, provide a self-contained building of about 11,000sq ft .
Completed by Bymac about 2008, blocks B2 and B3 provide “plug and play” office space offering any new owner or tenant the ability to just plug in their machines and go to work.
Block 1 is complete to shell and core, offering an incoming investor, tenant, or an owner occupier the ability to fit out the office accommodation to their needs.
QRE has now been appointed agents and has set a guide price of €5 million which reflects a very attractive capital value of about €125 per sq ft.
The agents said that with a little further work an overall rent in the order of €750,000 per annum is achievable, representing a net initial yield of more than 13.5 per cent.
According to agents Bryan Garry and David O’Malley of QRE, the property is expected to be of interest to high-net-worth individuals, family offices and property funds seeking to take advantage of renewed demand for office accommodation now that the “return to the office” is firmly under way.
Nutgrove Office Park is an established office development located in a busy and well known commercial and residential area of south Dublin. It is about 6km south of the city centre, and beside the Nutgrove Shopping Centre with its range of retail and professional services.
At €5 million the guide price is substantially below replacement cost. As such, it is expected to attract opportunistic investors alongside owner occupiers.
