Friday 17 August 2018

€4.75m Smithfield unit offers net initial yield of 6.35pc

Block F Haymarket Square is producing rent of €327,240 p.a.
Block F Haymarket Square is producing rent of €327,240 p.a.
Ronald Quinlan

Ronald Quinlan

Agent CBRE is guiding a price of €4.75m for Block F, Haymarket Square, a fully-occupied mixed-use property at the heart of Smithfield in Dublin city centre.

Located just south of North King Street and in close proximity to the intersection of Queen Street, the building is currently producing a rent of €327,240 per annum from two tenants on long-term leases. Block F comprises office and retail accommodation. While the subject property forms part of a larger scheme incorporating residential units, these are not included in the sale.

It comprises of two storeys above ground with a double basement underneath. The ground floor is in retail use with storage in the double basement below and extends to 11,386 sq ft (1,057.79 sq m). The office is located on the first floor and is in a T shape extending to 5,371 sq ft (498.98 sq m). The property has a raised access floor, cassette air conditioning and suspended ceilings.

The ground and double-basement retail unit is occupied by Fresh on a 25-year lease from 2009, paying a rent of €150,000 p.a. with no breaks. The first floor is occupied by Brown Bag Films on a 25-year lease from 2007 paying a rent of €177,240 p.a.

Surrounding occupiers include Gore & Grimes Solicitors, the Maldron Hotel, Boojum and Chopped. The property is well served by public transport, including the Luas and Dublin Bus.

Based on its €4.75m guide price, Block F offers the prospective purchaser a net initial of 6.35pc with long-term income of over 14 years.

Stephen Aherne, CBRE says: "This is an opportunity to acquire a long-term income investment at an attractive yield in a location which is increasing in popularity as a place to work and live. Further yield compression in the city centre and future increase in interest rates should make this attractive for investors."

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