Two industrial units in Ballymount with redevelopment potential with €6.25m guide
Knight Frank is quoting €6.25m for two industrial properties in west Dublin.
The agent is offering for sale the two investments which Knight Frank say will "give investors the opportunity to buy an extensive warehouse property let to Smurfit for a further 14.5 years and an adjoining vacant unit".
The asking price reflects a net intitial yield of 9.5pc.
The properties are located on the north side of Lower Ballymount Road, one of Dublin's prime industrial areas. The area is home to a number of other Smurfit businesses including the Educational Company of Ireland, Smurfit Kappa and Smurfit Recycling.
The properties occupy a site area of 3.4 acres and comprise two detached units of 27,000 sq ft and 59,500 sq ft.
The larger unit (pictured) is let to Smurfit Irish Papers Sacks Limited under a 25 year lease from August 2005 with 14.5 years unexpired. The property, which is let on an FRI basis with upward only rent reviews, produces a current income of €618,681 per annum. The lease is guaranteed by Smurfit Packaging Corporation Limited.
The smaller unit is currently vacant and following letting should produce an additional rent of €94,500 per annum.
Both units were originally developed in the 1970's and are said to be of traditional industrial construction with concrete portal frames, mineral fibre roofs and roller shutter doors. The larger unit has been extended with an additional modern bay added.
With a combination of long term secure income and the potential to increase the rent by re-letting the vacant unit, the investments offer a very attractive cash flow and would be particularly suitable for a private pension fund. The initial return of may increase to over 11.3pc once the second unit is income producing.
The site also offers redevelopment potential in the longer term, said Knight Frank's Ross Fogarty.