Tuesday 22 August 2017

Adelaide Chambers office scheme guiding at €8m

Adelaide Chambers' €8m guide price represents a keen capital value of €452 per sq ft
Adelaide Chambers' €8m guide price represents a keen capital value of €452 per sq ft
Ronald Quinlan

Ronald Quinlan

Agents Colliers International are guiding a price of €8m for the Adelaide Chambers office scheme on Peter Street in Dublin city centre.

Michelle McGarry is handling the sale of the property, which she describes as a highly-reversionary investment delivering a current rental income of €293,000 per annum.

Adelaide Chambers comprises a landmark four-storey, over-basement period office building, with a modern, four-storey extension.

Constructed behind the façade of the former Adelaide Hospital in and around the year 2000 by developer Sean Kelly's Benton Property Holdings, the property provides for bright and spacious office accommodation.

The scheme's configuration allows for a corporate HQ, while the suites are ideal for a start-up company seeking a home in the city centre.

Adelaide Chambers extends to a Net Internal Area of total of 17,670 sq ft (1,642 sq m) with a very generous car parking provision for the city centre with 31 basement spaces.

The building is multi-tenanted and currently producing €293,000 per annum with 67pc of the total rent roll derived from the four main tenants - SEBELA Pharmaceuticals, Decawave, Abakus Outsource and the HSE.

The average rent equates to €17.31 per sq ft, a figure which McGarry notes is substantially lower than the average market rents of at least €30 per sq. ft. and €3,000 per car space. There are numerous asset management opportunities available within the building for new purchasers.

The property's €8m guide price represents a low capital value of €452 per square foot, and compares favourably to the current Georgian sales on both Fitzwilliam Square and Merrion Square, where prices of up to €700 per square foot are typically being secured.

The price certainly compare favourably in relative terms to the €7.87m (£6.2m) Kelly's Benton Property Holdings paid to acquire the former Adelaide Hospital site in 1998.

Apart from the offices now being offered for sale, Kelly delivered 175 apartments, a fitness centre and crèche on the lands.

The scheme's delivery coupled with Bernard McNamara's development of the Bishop Square office scheme on nearby Kevin Street proved to be the anchors for the regeneration of an area of Dublin city centre that had been allowed to fall into decline.

The Adelaide, Meath and Harcourt Street hospitals all closed their doors in 1998 having been incorporated into the new Tallaght Hospital which opened in 1997.

Adelaide Chambers is located on Peter Street in the heart of Dublin city centre, occupying a prime location just 400m from St Stephen's Green, 700m from Grafton Street and 500m from George's Street.

The immediate area hosts an array of chic shops, cafes, hotels and restaurants. Notable occupiers within the property's immediate vicinity include The Radisson Blu Hotel, The National Archives of Ireland, Dunnes Stores HQ, GE Money, Dublin Business School and DIT Aungier Street.

Transport services are excellent with the LUAS Green Line, numerous Dublin Bus routes and Dublin Bike stations located within a few minutes' walk.

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