Wednesday 13 November 2019

Fully-let Citywest investment at €7.35m offers initial yield of 7.2pc

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Ronald Quinlan

Ronald Quinlan

Patricia Ward of agent TWM is quoting a price of €7.35m for a major commercial investment opportunity on the Naas Road in Dublin.

Fully-let to Miele and to United Drug, No 2024 Bianconi Avenue is currently producing total annual rent of €575,000 per annum.

Based on its price, the prospective purchaser can expect to secure a net initial yield of 7.2pc and a capital value per square foot of €149.

The subject site extends to 1.21 hectares (3 acres) with frontage of 82 metres onto the N7, one of only four Citywest developments with N7 frontage. It also benefits from being at Exit 3a from the N7 to Bianconi Avenue and has an existing 67-space surface car park with capacity for further spaces.

The property is within 1.8km of two new Luas stops at Citywest Campus and Fortunestown.

Miele Ireland Ltd occupies the two-storey office building fronting the N7 which incorporates its well-known Experience Centre.

Miele's headquarter offices are held under a lease for 25-years from May 2, 2008, expiring in May 2033. There is an outstanding rent review from May 2018, and the lease has the benefit of a parent company guarantee. The passing rent is €410,000 per annum.

The two-storey office building extends to 1,777 sq m (19,127 sq ft) combining a mix of open plan and cellular offices with raised access floors and air conditioning.

United Drug (Wholesale) Ltd occupies under a one-year lease dating from July 21, 2016 at a passing rent of €165,000 per annum. The tenancy is determinable by three calendar months' notice by landlord or tenant. The company occupies the entire warehouse of 2,813 sq m (30,278 sq ft) for storage and distribution purposes.

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