Friday 15 December 2017

Fenward House in Sandyford for €5m

Fenward House in Sandyford in Dublin.
Fenward House in Sandyford in Dublin.
Peter Flanagan

Peter Flanagan

CBRE is seeking €5m for a refurbished office block in Sandyford.

The recently refurbished Fenward House is immediately behind the Atrium Buildings bought earlier this year by Blackstone with the Luas Sandyford stop across the road.

Fenward House extends to 19,750 sq ft with 34 car parking spaces and has full Grade A specification with raised access floors and air conditioning. The building was completely refitted with refurbished lifts and new modern finishes to the reception area. The refurbishment was overseen by Urban Solutions - Property Development Managers who have been involved in a number of high profile refurbishments including 7 Hanover Quay, 6 Georges Dock and the Irish Life Centre.

The building has been let to Slainte Technologies Limited a technology company that provides healthcare software & services that drive efficiencies & quality in the healthcare industry.

The lease is for 10 years from June 2015 at an initial rent of €389,500 increasing to €409,250 at June 2016 with a further fixed uplift to €429,000 at June 2017. The higher stepped rent breaks back to just over €19 per sq ft and €1,500 per car space.

The rent is subject to an open market review in 2020. The lease is on full repairing and insuring terms and there are no breaks in the lease.

The €5m guide price equates to a yield of 7.5pc, rising to 8.2pc after the rent reviews of 2016 and 2017.

According to selling agent Colm Luddy, this investment is "likely to appeal to both private investors and some of the smaller funds".

"It offers an opportunity to get exposure to the Sandyford market and improving rental values. It's let to a strong covenant and in one of the best locations in Sandyford with the Luas on your doorstep," he said.

According to CBRE, the recovery in the prime suburban office markets has lagged Dublin's City Centre but is now starting to accelerate. With the office vacancy rate in the South Suburbs running at 8pc at present, rents in Sandyford are "are likely to continue rising".

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