Wilson House on the market asking €7.5m
Published 15/09/2010 | 05:00
Irish Life, the assurance company, has placed the Wilson House office block on Fenian St, Dublin 2 , back on the market and are believed to have reduced the asking price to around €7.5m.
The 2,079sqm property is let to US publishing company HW Wilson and is generating an annual rent of €877,600 per annum which would effectively generate a yield of around 10pc.
As the lease has seven years to run, an investor could recover about 70pc gross of such a purchase price by the time the lease expires. A rent review is also due in about two years time. Colm Luddy of CB Richard Ellis is handling the sale which includes 14 parking spaces.
In 2008 Irish Life included Wilson House in a portfolio of three properties which it offered for sale with an asking price of around €70m, of which Wilson House accounted for over €14m.
The three included Hambleden House next to Fitzwilliam Square, Dublin 2. Last May an overseas fund, whose identity has not yet been disclosed, agreed to pay €52m for an alternative portfolio which also included Hambleden.
As Irish Life is no longer under pressure to sell to meet cash demands from investors in its property funds, the Wilson House sale now emanates from a desire to improve liquidity. The buyer of the portfolio outbid a US investment bank which had offered €50m for Hambleden along with three other ILIM office properties which are producing a rent roll of €4.2m or an initial yield of about 8.3pc.
These three include the 1,625sqm Seagrave House on Earlsfort Terrace; Davitt House, a 4,087sqm building rented to the Office of Public Works and 25 St Stephen's Green, Dublin 2, which includes the former Compustore shop and wraps around the Adams Auction rooms into Kildare St. However, some of these buildings have unlet space and Irish Life agreed to underwrite the rental income on some of the space for five years.
The overseas bidding interest for the portfolio was welcomed by Irish commercial property owners as an indicator of a return of overseas interest in the Irish office market.