Monday 19 March 2018

Green to cash in on suburban office market growth with south Dublin sale for €22m

Colliers is seeking €22m for Building 2 South County Business Park
Colliers is seeking €22m for Building 2 South County Business Park
Peter Flanagan

Peter Flanagan

The run on office blocks in suburban Dublin looks set to continue, with Colliers International seeking €22m for Block 2 in South County Business Park.

The block, which is let to Microsoft, has been put on the market by Green Property. The move comes barely a week after the European arm of US giant Kennedy Wilson paid €62m for the Chase Building in nearby Sandyford and said it believed the suburban office market was due for significant growth. The business park is located close to Leopardstown racecourse and the Central Park office development.

The property is currently let to Microsoft on what Colliers describe as "flexible lease terms" up to January 2020. Microsoft is paying a rent of €1.97m per annum for the block, and there are said to be earlier break options in the lease terms.

In its current form, Block 2 offers accommodation of 8,111 sq m (87,306 sq ft) along with 283 car parking spaces. Importantly, and perhaps reflecting the era in which it was built, the property sits on a site of 2.4 hectares. That gives any buyer huge scope for redevelopment if they so desire.

According to Colliers, future development will be determined by the Dun Laoghaire Rathdown County Council Development Plan 2016 to 2022 and the Sandyford Urban Framework Plan (SUFP). The SUFP Zone 3 provides for office based employment uses and a plot ratio of 1:1.5 which indicates that a further office floor area of over 20,000 sq m could be added to the current building.

Colliers' Nick Coveney believes that "with the benefit of short term income showing a strong initial yield this represents a great opportunity to acquire quality office space with significant potential for increased density in a prime business location which is further developing as a hub of activity, with great corporate occupiers, easy motorway access and excellent public transport networks".

Green Property has been selling heavily in recent months, including the €950m Blanchardstown Centre.

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