An exceptionally well-let office building completed less than seven years ago in Dublin’s south docks is to be offered for sale on the international market with a guide price of €25 million. The purchaser can expect a net initial return of 4.8 per cent after allowing for standard purchaser’s costs of 4.46 per cent.
Peter Flanagan of BNP Paribas Real Estate is handling the sale of The Anchorage, a distinctive six-storey-over-basement building overlooking the river Liffey at the junction of Sir John Rogerson's Quay and Lime Street. It was developed by two Dublin businessmen who now wish to move on to a retail project in south Dublin.
The office block is currently producing a rental income €1.25 million, reflecting an average rent of €505 per sq m or €47.20 per sq ft. The general expectation among some office agents is that rents in the south docks should reach €600 per sq m (€55.70 per sq ft) by year end because of the scarcity of high quality space and the restricted level of ongoing development. The Anchorage comes with nine car parking spaces.
The impressive block with glass curtain walling and dark stone panels extends to 2,475sq m (26,600sq ft) and at the asking price equates to a capital value of €10,115 per sq m (€940 per sq ft). IPUT's purchase of 1 Grand Canal Square worked out at €8,290 per sq m (€770 per sq ft); Irish Life's acquisition of 1 Warrington Place reflected a valuation of €8,330 per sq m (€775 per sq ft) while more recently Irish Life settled on a valuation of €8,700 per sq m (€808 per sq ft) when it bought in 2 Grand Canal Square. Only last week, Grand Canal Square figured once more when Union Investment paid in the region of €9,967 per sq m (€926 per sq ft) for the two Facebook buildings.
One of the attractions of the docks building is that part of the ground floor has been assigned to Café Parigi, an Italian style cafe/restaurant serving breakfast, lunch and evening meals. It is currently paying a rent of €55,000 for this facility. The office lobby in the same area includes a concierge desk and a lift and service core. Floor to ceiling heights on all floors are 2.9 metres. The penthouse floor is particularly attractive with a wraparound deck and access to a balcony offering panoramic views over the city.
The list of tenants is equally impressive and includes Walkers, a global legal firm specialising in finance, who occupy the first, second and penthouse levels on two leases at an overall rent of €465,149. D'Amico, a global shipping company , has agreed 20 year lease on the third floor at a current rent of €384,127. These are subject to break clauses in 2018 and 2023. Bloomberg, the software and media giant, have leased the fourth floor, also on a 20- year lease, at €349,380. It also has a break option in 2018 subject to 12 months notice.
One of the great advantages is that the L-shaped floorplates provide 500sq m (5,382sq ft) of column-free accommodation – the ideal volume of space for a great many companies trading in Dublin.
Peter Flanagan says The Anchorage has a proven track record in achieving benchmark rental levels since development through the Dublin office market cycles. “It is a fantastic opportunity to acquire a modern multi-let office and retail block in a prime south docks location with arguably the most marketable size floor plates in the Dublin market . . . We anticipate strong interest from domestic and international investors alike,” he said.
