Two office blocks on the opposite side of the river Liffey from Heuston railway station in Dublin 8 are to be offered for sale on the instructions of receiver Kieran Wallace of KPMG.
Carol Kavanagh of Savills is guiding €9.5 million for Blocks C and D at Parkgate Business Centre, which will give investors a net initial return of 12.82 per cent.
The capital value will work out at €2,884 per square metre (€268 per square foot) – well below replacement cost.
The two office buildings extend to 3,298sq m (35,499sq ft) and come with 36 car parking spaces.
The business park also has two other office blocks on site as well as an apartment building.
The two investments going for sale have State agency-backed income, with Block C let to the Rail Procurement Agency (RPA) and Block D let to the Health Service Executive (HSE).
25-year lease
The RPA is paying a rent of €557,552 under a full repairing and insuring 25-year lease from 2001.
A tenant break option in 2016 is subject to a 12-month rental penalty .
The Health Service Executive has a similar lease and break option with a rental penalty
It is currently paying €714,899 per annum.
Carol Kavanagh said that given the AAA status of the income, the strength of the covenants and the improving office market in the city, she expected that the investment would attract considerable Irish and overseas investor interest.
