A new property investment fund, the Appian Burlington Property Fund, has agreed the purchase of Fenward House, a 1,858sq m (20,000sq ft) office building on Arkle Road in Sandyford, Co Dublin.
The fund paid around €5 million for the building which is let to a leading software company with a rent roll rising to €430,000 from this year. The deal will show a yield of about 8 per cent. CBRE was the agent for the vendor.
The property fund has been established as a sub-fund of Appian Investments ICAV which was set up by Appian Asset Management last November.
The fund is focused on high yielding opportunities in the commercial property market and plans to invest about €50 million over the coming 12 to 18 months in a mix of office, retail and industrial units in the Dublin suburbs and other large cities.
John Bruder, managing director of Burlington Real Estate, said Fenward House was typical of the type of investment the fund would target.
“There’s little value to be secured in Dublin city centre at present but there is real potential not far outside the main market. Fenward House is a great example of the type of investment we are seeking: a good property with a good tenant in a key business district. We look forward to securing further investments in the €5 million-€15 million price range,” he said.
Kevin Menton, director of Appian, said the fund was designed to produce an income yield to investors of at least 5 per cent a year together with capital value growth in the medium term. He said that given the very low interest rates, the targeted return was attractive to investors. The fund was restricted to qualifying investors and the minimum investment was €100,000.
