Irish Life, the Irish insurance and pensions company, has sold three industrial properties at Airway’s Industrial Estate in north Dublin for €14m.
That’s €3m more than the guide price of €11m. quoted by estate agents JLL when they brought it to the market in April.
A private Irish investor has purchased the Units 1, 2 and 3 on the industrial estate in Santry.
Despite challenging economic headwinds, the sales process attracted strong interest from a wide cohort of investors and secured a large volume of bids.
Its strong selling price reflects the strength of demand for industrial units which has seen the yields on them fall below those available for Dublin retail accommodation and close to those for offices.
Each unit is fully let to a single tenant and together they earn a total annual rent of €671,273 suggesting a net initial yield of less than 4.36pc.
Furthermore the strength of the deal is underpinned by the fact that 62pc of that rental income is generated from government bodies although the average unexpired terms on the leases is only 2.6 years.
Together the gross internal area of the combined units totals 127,000 sqft (12,000 sqm) on three adjoining sites extending to a combined six acres.
Irish Life bought the units more than 40 years ago as part of a larger forward-funding deal.
Subsequent reports showed that in 1999 Irish Life offered 12 units at Airways for sale for around IR£11m (€13.97m) when the 12 were generating rents of IR£700,000 (€889,000).
Deirdre Hayes from Irish Life, said this latest sale was ultimately driven by a “desire to deliver a strong return for policyholders. Irish Life have ambitions of doubling the size of its industrial portfolio over the short to medium term and have been very active in the market, having forward-funded the development of a modern industrial unit in Vantage Business Park also near Dublin Airport.”
In answer to the question as to why Irish Life did not pursue the redevelopment of the Airways units, the company said the fund is “strategically repositioning its portfolio to dispose of non-core assets across all sectors and to acquire or develop high-quality replacement assets that meet its long-term performance and ESG objective.
With visibility from the busy Swords Road, Airways is located less than five minutes from Dublin Airport.