Dublin logistics investment offers 5.5pc net initial yield

The warehouse in Fonthill Business Park is the headquarters of Carrolls Irish Gifts

The property in Fonthill Business Park is a detached industrial unit on a large self-contained site of about two acres

Donal Buckley

A warehouse and office investment let to Carrolls Irish Gifts has come on the market with a guide price of €6.9m. Located in Fonthill Business Park, Dublin 22, the premises at Unit 20 extends to approximately 39,721 sqft.

It is generating a passing annual rent of €417,071 which equates to €10.50 per sqft and Fergal Cleary, senior surveyor in investments at selling agent Savills, says: “This offering provides investors with an opportunity to acquire a long-term industrial investment with the added benefit of CPI-linked rent reviews with a cap-and-collar of plus 3pc and minus 3pc annually.”

This means that rents may increase or decrease in line with the CPI at a maximum or minimum of 3pc.

Its guide price would also equate to a net initial yield of 5.5pc after standard purchasers’ costs and price of €174 per sqft.

Fonthill Business Park is strategically located for a logistics distribution business as it is within 2.5km of the M50/N4 motorways interchange which gives easy access to Dublin Port, Dublin Airport and the national roads network. Fonthill has a track record of attracting large domestic and multinational occupiers including Glanbia, Musgrave, Whirlpool and An Post.

The property is a detached industrial unit on a large self-contained site of about two acres and benefits from a warehouse clear internal height of about 9.4 metres, a gated yard to the rear, as well as front and rear access. Internally the unit includes ancillary offices over two storeys extending to about 9,399 sqft.

Carrolls took occupation of the building as their new headquarters in 2022 and have since upgraded the office element.

Established in 1982, Carrolls is one of Ireland’s leading gift item retailers and is 100pc Irish owned. Its product range includes some of Ireland’s most famous brands like Guinness and Newbridge Silverware products. Its retail outlets trade from many city centre locations including high-profile units on Dublin’s high streets, the most recent of which is 6-8 College Green, part of the Hines-owned Central Plaza complex.

The chain currently operates 18 stores throughout the country including Dublin, Cork, Kilkenny and Belfast while also having a strong e-commerce presence. Its suppliers now stand at about 75pc Irish.