Sunday 15 September 2019

€13.25m for Grade A office at heart of Dublin's CBD

South Point’s passing rent of €40 per sq ft offers significant potential for income/capital growth
South Point’s passing rent of €40 per sq ft offers significant potential for income/capital growth
Ronald Quinlan

Ronald Quinlan

Prospective investors looking to take advantage of demand for prime office space at the heart of Dublin's central business district have a rare opportunity to acquire a fully-refurbished Grade A office building in Dublin 2.

Agents Knight Frank are quoting a price of €13.25m for South Point on Harmony Row. Located on the south side of Grand Canal Street Lower, it adjoins the new Sharp Building which is currently being developed by the McGarrell Reilly Group.

South Point sits just 500 metres from Merrion Square, and is ideally located midway between Dublin city centre's traditional Georgian core and Silicon Docks. There is a growing number of both international and home-grown technology and financial occupiers in the immediate area including Twitter, Facebook, Google, Stripe, Accenture, the NTMA, and KBC.

The property comprises a four-storey over-basement office building which has just undergone a full refurbishment programme by Lugus Capital. This redevelopment included an additional office floor. The works also saw the replacement of lighting, mechanical and electric services as well as a new curtain-wall glazing system on the upper floors.

In addition to the upgrading of the block, energy efficiency measures have been introduced including heat recovery units, low energy LED lighting and Green Roof technology.

The investment has recently been let to serviced-office provider, Iconic Offices.

Iconic (Weston Office Solutions Limited) occupies the property under two 25-year leases at a current rent of €790,870 per annum. The leases provide for reviews every five years and offer a tenant break option in 2028.

Iconic is one of Ireland's leading co-working/serviced office providers with over 250,000 sq ft of workspace in Dublin.

The quoting price of €13.25m reflects an investment return of approximately 5.50pc.

With the passing rent reflecting a rate of just €40 per sq ft for the office area and €2,750 per car space, there is significant potential for income/capital growth.

Elsewhere in the city, Knight Frank's Capital Markets team has brought No 61 Halcam Court to the market for a guide price of €6.5m. Located at the junction of Pembroke Road and Raglan Road at the centre of the Dublin 4 embassy belt, the property comprises a four-storey, over-basement period building accommodating a total of 15 apartments. The main house, which was fully restored in 2008, is complemented by three mews townhouses to the rear.

The development is fully tenanted and producing €362,148 in rental income per annum, which at the excess €6.5m guide price, equates to €465 per sq ft, leaving significant potential for capital growth with nearby residential properties seeking closer to €900 per sq ft.

Overall, the holding consists of nine one-bedroom apartments, six two-bedroom apartments, two two-bedroom mews townhouses and one three-bedroom mews townhouse.

The development has been finished to an extremely high standard with many of the original period features such as intricate cornice work maintained and restored. Rooms have been brought back to their original volumes making the living spaces brighter and more accommodating.

The building has been further upgraded with the installation of a new elevator, new kitchens and bathrooms, all set in fully-landscaped grounds.

There is independent, gated-vehicular access from Raglan Road and that leads into an enclosed courtyard with 21 car-parking spaces as well as dedicated bicycle parking and bin storage.

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