A former grain store redeveloped and extended in the south Dublin docklands to provide interesting office accommodation is to be sold as an office investment through agent Finnegan Menton.
Nicholas Corson of the agency is guiding €3 million for the property, which will show a net initial yield of 8.1 per cent, increasing to 8.6 per cent by 2017.
The distinctive building on Prince's Street South is located just off City Quay, almost half way between Tara Street and Pearse Street Dart stations.
Tenants
It is fully let to three tenants and the current rent of €254,000 is due to rise to €269,000 within almost three years.
The cut-stone grain store has an overall floor area of 1,161sq m (12,500sq ft) over six levels, including a modern extension at fourth- and fifth-floor levels.
LSI Storage Ireland pays a rent of €100,000 for 394sq m (4,242sq ft) on the fourth and fifth floors.
The company, listed on Nasdaq for its design of semiconductors for data storage, is now on its third lease of four years and nine months.
Digit Game Studios initially took a three-year lease from 2012 and has since expanded into a floor area up to 520sq m (5,608sq ft) on leases that run to May 2018.
The company’s rent of €110,000 increases annually up to €125,000 in 2017.
The third tenant, Cellusys, pays an annual rent of €35,000 for 224sq m (2,414sq ft) under a five-year lease from December 2012.
Additional rental income comes from roof masts.
Mr Corson said there were “excellent prospects for rental growth” in the building, where existing rents were set between 2012 and 2013 at €161 to €247 per sq m (€15 to €23 per sq ft).
