Athlone offices for €3.4m offer secure rental income
Ross Fogarty of Knight Frank is quoting a price of €3.4m for a secure office investment in Athlone, Co Westmeath.
The property, which is being sold on the instruction of receiver BDO, is currently let to the Commissioners of Public Works in Ireland on an upward-only, 20-year, full repairing and insuring (FRI) lease from September 24, 2008 at a passing rent of €359,577, with a tenant break option in year 15, providing the potential investor with over five years of secure income.
Based on the property's quoting price of €3.4m, the buyer can expect to secure a net initial yield of 9.74pc once standard acquisition costs of 8.46pc are deducted.
The property consists of a three-storey modern office block developed around 2007 and measuring 1,871 sq m (20,138 sq ft) with 50 surface car parking spaces on a site of 1.2 acres.
Located on Grace Park Road, the building is occupied by the Department of Social Protection and is laid out for office use with a mix of open plan and cellular office space, with toilet facilities on each floor.
The property benefits from front and rear access, and serviced lifts and stairwells at both ends of the building. The subject property is situated approximately 650m from Athlone town centre.
While the office investment comes with the security of at least five years of income, Athlone's acknowledged status as the business centre of the midlands should serve to reassure the purchaser in relation to the longer-term prospects of the investment.
Athlone is strategically positioned within the midlands with access to an excellent road and rail network. The town has a strong industrial base with significant potential for further expansion. Athlone's 40 hectare (100 acre) IDA Business Park serves as the national headquarters of the IDA, while the park itself is home to numerous international companies.
Activity in the regional office market has increased and investors have shown a keen interest in regional office investment assets, with approximately €61m worth of office investment transactions occurring in regional locations in 2017.
It is worth noting that one of the largest regional office transactions of 2017 was Knight Frank's sale of the Ericsson facility in Athlone, which sold for €20m. The price paid for the facility represented a net initial yield of 8.60pc.
Knight Frank say that with a shortage of prime investment opportunities in Dublin, they expect to see increased interest from investors in higher yielding regional investment opportunities.
Outside of its attractiveness as a location for investment, Athlone enjoys the benefit of a wide range of amenities and services, all which are available within a 20 mile radius of the town. These include the Golden Island Shopping Centre and Athlone Town Shopping Centre, which incorporates the Sheraton Hotel, as well as a wide variety of restaurants and eateries.
Athlone's position on the River Shannon at the foot of Lough Ree meanwhile continues to support a steady flow of fishing and water enthusiasts including those who participate in sailing, cruising, wind surfing and canoeing.