In one of the most unusual property investments to reach the market for a considerable time, CBRE is seeking a buyer for a medical centre at Balally, Dundrum, Dublin 14, which is fully let and producing a strong rental income.
Natalie Brennan of CBRE is quoting €7 million for the Rockfield Medical Centre opposite Dundrum Town Centre, which has a rent roll of €606,517 and is showing a net return of 8.29 per cent.
The medical centre is based in a modern four-storey office building extending to 2,556 sq m (27,512 sq ft) which is let to a mixture of public and private medical practitioners.
The average weighted period on the leases is 9.25 years. There are 20 car parking spaces on site.
Selling point
One of the main selling points is that 44 per cent of the rental income comes from the
Health Service Executive
which operates a child medical and dental care clinic on the premises.
Other tenants include VHI Swiftcare which provides walk-in medical services for minor injuries and illnesses with the objective of looking after patients within one hour.
The third tenant is Euromedic, a medical scan clinic which offers a range of services including MRI scans, Ultrasound, CT scan, X-ray and OPG scans. Uniquely, all three tenants have the capacity to work in tandem when the need arises.
Rental growth
Natalie Brennan says that with city centre rents expected to hit €538 sq m (€50 per sq ft) for Grade A space and similar office accommodation now in short supply, there were signs of rental growth in the suburbs as well.
“This type of investment will be attractive to an investor who is looking for a higher yielding office investment and is prepared to look to the suburbs to achieve it.
“We also expect that the strength of the tenants will appeal to investors.”
