D15 industrial & office facility at €1.9m offers 6.6pc net initial yield
Kevin McHugh of agent William Harvey is quoting an asking price of €1.9m for a 1,893 sq m (20,376 sq ft) industrial and office investment property in Damastown Way, Dublin 15. The property has been let in its entirety to Rennicks Group Ltd, which is the primary trading entity in the Rennicks Group.
Rennicks Group Ltd has entered into a 10-year full repairing and insuring (FRI) lease from November 2017. The annual rent is €135,000 (exclusive) with a rent review to market rent after year five. There is no break option in the lease. Based on the asking price of €1.9m, the purchaser can expect a net initial yield of 6.6pc after standard purchasers' costs of 8.46pc, and a capital value of €1,004 per sq m (€93.24 per sq ft).
The building is a modern, high-bay, semi-detached industrial facility with offices and staff facilities located within a gated site. There is a marshalling area to the rear and car parking to the front and side of the property.
The industrial space has a clear internal height of eight metres (except for cross beam), high-output lighting throughout and a twin-skin insulated metal deck roof overhead. Loading access is provided via one grade level loading door and one dock leveller. There are two storey offices and staff facilities to the front of the property laid out in a mixture of open plan and cellular offices and a canteen.
Kevin McHugh says: "There is a real shortage of quality industrial investments of this lot size available in the marketplace, making the subject investment a particularly attractive one. It offers a long, secure lease term to an excellent tenant, and a significant return which should increase at rent review based on the low current rent."