Saturday 7 December 2019

Clonskeagh office block on the market seeking €2.3m

The office block at Richview Office Park, Clonskeagh, Dublin, which is on the market for €2.3m
The office block at Richview Office Park, Clonskeagh, Dublin, which is on the market for €2.3m

Peter Flanagan Commercial Property Editor

A top quality office block in south Dublin has been put up for sale with an asking price of some €2.3m.

Knight Frank have been tasked with disposing of Block 7, Richview Office Park in Clonskeagh.

The property, which is let to McDonald's Restaurants Ireland Limited, will provide a net initial yield of just below 9pc at that asking price.

Richview Office Park is a purpose built business park about 6km from Dublin city centre and forms part of the "Clonskeagh office suburban hub along with Beech Hill Office Campus, Belfield Office Campus and Clonskeagh House Office Park". Occupiers in the area include Smurfit Kappa, Ericsson and Omnicom Media Group.

Knight Frank say the property has "superb" transport linkages with the Miltown Luas stop within walking distance while the 11, 11A and 11B Dublin Bus routes depart on a frequent basis from the adjoining Clonskeagh Road.

PARKING

The property comprises a three-storey detached office block divided into two self- contained office suites extending to a total of approximately 8,611 sq ft.

There is a mix of open plan and cellular offices including meeting rooms and a boardroom with an excellent standard of internal and external finishes throughout.

The property is situated on a rectangular shaped site with 24 surface car parking spaces.

It is let to McDonald's Restaurants Ireland Limited under a 25-year lease from December 1996 at a current rent of €213,873 per annum with upward only rent reviews.

The next review is scheduled in November 2016 and there are no break options remaining on the lease.

McDonald's is the world's largest chain of quick service restaurants. It has been operating in Ireland since 1977 and has since expanded to currently own or franchise 84 restaurants throughout the country.

The company employs over 4,000 people making it the third largest multinational employer in Ireland.

How successful the sale process for this property is likely to be closely watched, as it may set a new floor for suburban offices in Dublin.

While much of the press coverage has been focused on the city centre market, as prices there ramp up and yields contract, Knight Frank say investors are increasingly looking to secure other property assets for an improved return.

The fact that this property has a blue chip tenant is only likely to increase interest in it from potential buyers.

"Given its excellent covenant, the investment is likely to appeal to both domestic and overseas private investors," Knight Frank added.

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