A private Irish investor is in line for a net initial yield of 7.39 per cent on their investment following the acquisition of Millbank House, a modern office block at Sandyford Business Park in Sandyford, Dublin 18. The new owner secured the building for €3.4 million. The price paid represents a discount of €500,000 or 13 per cent on the €3.9 million agent Colliers had been seeking when it offered the property to the market in September of last year.
Millbank House comprises a four-storey over-basement office building extending to 2,123sq m (22,848sq ft) (gross internal area) and 40 basement car parking spaces. The building has open-plan floor plates which range in size from 372sq m to 464sq m (4,000 to 5,500sq ft).
The subject property is currently leased to two tenants. Pro Rugby Championship DAC acting as General Partner of Pro Rugby Championship LP holds a 10-year lease from 2017, expiring in December 2027. The passing rent is €141,480 annually. Mundipharma Pharmaceuticals holds a 20-year lease from 2007 expiring in October 2027. The passing rent is €134,875 annually.
The subject property occupies a high-profile position on Arkle Road with excellent profile on to Blackthorn Road. The Luas Green line is located just 250 metres from the property and provides regular access to Dublin city centre and the surrounding suburbs.
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Sandyford Business District is home to a number of global companies including Microsoft, Vodafone, Google, Mastercard and Meta.
While the buyer, who was represented by JLL, has secured an initial yield of 7.39 per cent, the investment offers significant reversionary potential on letting the vacant offices.
Stephen Conway of Colliers said: “The property generated strong interest from a mix of opportunistic investors and owner occupiers.”
