Agents Colliers International has sold Millbank House, a modern standalone office building in Lucan, Co Dublin, for €910,000. The price represents a considerable premium of €60,000 on the €850,000 Stephen Conway of Colliers had been seeking when he brought it to the market.
The selling price of €910,000 will provide the purchaser with a net initial yield of 7.47pc after allowing for standard purchaser's costs.
The property attracted strong interest from a number of domestic investors. Commenting on the sale within the context of the wider investment market, Conway noted "particularly strong demand at present for investment opportunities of this lot size".
Millbank House comprises a modern, two-storey standalone office building within Millbank Business Park. The building has a gross internal area of approximately 758.6 sq m (8,166 sq ft) with 16 designated surface car parking spaces. The property is in excellent condition having been finished and maintained to a high standard, with a modern fit which includes air conditioning and a lift.
The property is generating a rent of €71,000 per annum from two tenancies.
The ground floor is leased to De-Jay Alarms Limited by way of a 10-year lease with a commencement date to coincide with the completion of the sale. There will be a mutual break option at the end of year five. The rent will be €41,000 per annum.
The first floor is let to John P Burke & Co (trading as the Jaguar Capital Group Ltd) on a five-year lease from October 2012 at a rent of €30,000 per annum.
The property is on the Lower Liffey Road, just north of the River Liffey. The scheme is well-positioned just 300m from Lucan town centre and enjoys all the amenities a busy satellite town has to offer.
The subject property enjoys a high-profile position at the entrance to the Millbank campus which is highly accessible via the N4 and M4. Millbank Business Park is just 4km from junction 4 of the M50 motorway. The scheme and nearby Lucan town centre are served by quality bus routes, to and from the city centre.