Tuesday 16 July 2019

Aviva fund pays over €7.5m for Aerodrome Business Park unit

Sold: Unit H, Aerodrome Business Park
Sold: Unit H, Aerodrome Business Park
Ronald Quinlan

Ronald Quinlan

Industrial property specialists, William Harvey, have secured a price of €7.555m on behalf of a group of private investors for a prime warehouse facility at Aerodrome Business Park in south west Dublin.

Based on that sale price, the purchaser, Aviva Life & Pensions UK Ltd, can expect to secure a net initial yield of 5.19pc rising to 5.49pc.

Located at the front of Aerodrome Business Park, Unit H extends to 4,290 sq m (46,177 sq ft) on a site of 2.97 acres. The low site density provides capacity for future expansion of the building.

The subject property was purpose built for Fannin Ltd (not affected) in 2007. The warehouse benefits from a clear internal height of 12 m (39 ft) with no internal columns, together with both dock level and ground-level loading access. The service yard and expansion space areas are fully concrete surfaced. The lease is for 25 years from 2007 with the next rent review and break option due in 2027. The current annual rent of €425,000 steps to €450,000 in November 2022.

Commenting on Aviva's acquisition of the property, Rhys Evans, Fund Manager of the Aviva Irish Property Fund said: "We are delighted to secure this asset, continuing our strategy of acquiring well-let assets within the Dublin market. The unit is well-specified and the occupier has excellent financial credentials which will deliver strong income performance for the Fund and its investors".

The sale of Unit H was handled by Siobhan Convery and Philip Harvey of William Harvey. Peter Flanagan of Knight Frank acted for the purchaser.

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