Monday 18 December 2017

Green sell-off continues with €18m business park

Green Property is seeking €18m for Rosemount Business Park in Dublin
Green Property is seeking €18m for Rosemount Business Park in Dublin

Donal Buckley

Green Property has brought another Irish property to the market in the space of a few weeks as it is now offering a distribution centre at Rosemount Business Park, Dublin 15, for sale with an €18m guide price. This follows only four weeks after it brought Blanchardstown Shopping Centre, to the market with a €1bn-plus price tag.

As reported in the Sunday Independent it is also expected to raise about £250m (€322m) from the sale of offices at 7 and 8 St James Square, in Central London.

These are separate from the plans by Green REIT, which is also managed by Stephen Vernon and his Green team, to sell six Irish properties in the Glas portfolio for around €168m.

Green chairman Stephen Vernon recently said the sales are coming about for different reasons and that he is certainly not calling the market.

"We have every confidence in the future of the (Irish) market and that is reflected in the 300,000 sq ft of properties that we are currently developing such as the offices at Central Park and Dawson St. We are also developing industrial units at Horizon Business Park near Dublin Airport. These include speculative developments as well as a pre-lets," he adds.

The REIT sales relate to the adjustment of its balance sheet to meet REIT standards whereas the Green sales relate to some of its older shareholders planning for their retirement.

Located at the entrance to Rosemount Business Park, Blanchardstown, the distribution centre sits on a 5.12 hectare site and comprises Unit 1A & Unit 1B together with a separate but adjoining administration building with a total floor area of 266,650 sq. ft.

Designed to facilitate single or double occupancy, both units are presently let to Ireland's largest retailer Dunnes Stores under a 20 year lease from September 2008 at a present rent of €1.15m per annum.

A rent review due in September 2015 remains outstanding and the lease contains a break option on September 2019.

Green originally acquired the property in 1998 as part of a sale and lease back deal with Irish Express Cargo which developed it as Ireland's first purposely designed distribution centre. At the time the purchase price was reported to have been IR£20m sale. BNP Paribas Real Estate, the agents on the current sale, declined to comment on that price.

That 1998 deal also included a joint-venture agreement to complete the development of the second, 80,000 sq ft phase bringing the centre up to its current 266,650 sq ft size.

That second phase, also accounted for IR£5 million of the then purchase price.

Patrick Curran, managing director BNPRE points out that the current property includes 34 trailer parking spaces, a standalone transport depot with full service facilities, a separate truck wash and 184 designated car spaces. The design specifically provided for cross docking facilities to deal with freight forwarding and separate but secure interconnecting logistics units to provide hi-bay storage.

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