With Dublin Airport operator DAA aiming to increase the airport’s capacity from its current annual limit of 32 million passengers to 40 million passengers, the demand for land in the surrounding area would appear to be robust.
The appetite of investors for holdings within the vicinity of the airport and the M50 and wider motorway network was evidenced most recently with the completion of the sale of a site jointly occupied by Emo Oil and Value Van Rentals on the Old Airport Road. Having been offered to the market at a guide price of €2.75 million last November, the 0.7-hectare (1.8-acre) site has been acquired by a private investor for €3 million.
That price equates to €1.67 million per acre and represents a significant increase on the €900,000 per acre paid by the UK-headquartered industrial developer and asset manager Chancerygate for an adjoining 2-hectare (5-acre) site on the Swords Road in Santry in 2022.
The site on the Old Airport Road is west of the Swords Road, with the Carlton Hotel to the north, the sports grounds of the Royal College of Surgeons to the south and just off the M1 and M50 motorways. It is jointly occupied by Emo Oil Limited under a 10-year lease expiring on March 31st, 2026, at a passing rent of €65,000 per annum, and by Value Van Rentals Limited under a 10-year lease expiring on December 31st, 2029, at a passing a rent of €92,000 per annum. The combined rent is €157,000 per annum.
The site’s new owner stands to secure a net initial yield of 4.96 per cent after standard purchaser’s costs of 4.76 per cent.
Niall Delmar, who handled the sale on behalf of Colliers, said: “This property represented an excellent opportunity for an investor to diversify their portfolio, and in that regard there was good interest from a range of investors and special purchasers.”
