IPUT wins race, buys share in top Dublin office block
IPUT appears to have won the race to buy a majority stake in one of the top office blocks in the country for more than €75m.
The former Irish Property Unit Trust is said to agreed terms to buy a 70.8pc stake in the Riverside 1 building on Dublin’s south quays.
The stake is currently held by Harcourt Insurance.
In what will be one of the biggest single building deals this year, IPUT will take the share in the building, which is occupied by the law firm McCann FitzGerald.
The stake was put on the market with a €75m guide price but the final sale may be worth more than €80m.
The overall investment is generating a rent of €5.15m per annum. This passing rent can be analysed as €45 per sq ft which, given the recent occupational improvements, can be redone almost immediately claimed the agents.
The lease offers investors an unexpired term of in excess of 16 and a half years.
"The level of income security is unprecedented amongst recent office investment activity," Savills claimed.
The asset has upward-only rent reviews every five years. Leases granted since 2010 are drawn on open market rent reviews.
The next rent review is in October 2016. That offers investors 'an ideal opportunity to benefit from the rising rents of the office market', the agents claimed.
The building was constructed by John Sisk and Son on behalf of the partners of McCann Fitzgerald. It was designed by Scott Tallon Walker Architects and construction was completed in 2006.
The corporate headquarters style firm extends to approximately 110,000 sq ft of Grade A office accommodation set over seven floors.
There are also 58 basement car parking spaces.