An investment team led by Joe O’Reilly of Chartered Land has sold Adelaide Chambers, a redeveloped office building which formerly accommodated the Adelaide hospital in Dublin, for €13.5m.
That reflects a premium of €500,000 on the price quoted by agents Knight Frank.
The purchaser is IBI Group Holdings, which is listed on the Hong Kong stock exchange. Its price reflects a net initial return of about 5.29pc but IBI will expect to increase that by letting a few vacant suites.
Mr O’Reilly’s team bought the building out of receivership in 2017 for more than €7m and along with their letting and property management agents Knight Frank and asset manager iReal Capital, undertook a substantial refurbishment and letting programme that increased the income and value of the property.
Its main tenant, Decawave/Qorvo, opted to grow within the building as their business has substantially expanded and it now occupies two-thirds of the building. The HSE is another tenant.
The Croatian Embassy occupies the top floor of the east wing but its section was not included in the sale.
The vacant office suites are expected to be refurbished by the new owner which specialises in the built environment, including subsidiaries providing contracting services, distribution of high-tech and innovative building products including energy-efficient lighting, and air quality monitoring devices.
Located about 400m west of St Stephen’s Green, Adelaide Chambers extends to 19,639 sqft and comes with 31 car spaces.
It was originally converted from a hospital to offices in 2000 by Sean Kelly of Benton Property Holdings.
Meanwhile, it is believed that Joe O’Reilly is also close to a deal for the sale of Independent House, the mixed-use building on Talbot Street which includes the offices of this newspaper and a SuperValu store.
Selling agent Knight Frank is guiding €29m for that investment which generates a combined annual rent roll totalling €1,782,200. That suggests its purchaser stands to generate a net initial yield of 5.6pc.
In 2018, Mr O’Reilly’s investment vehicle paid €24.3m for the property along with 10 adjoining Brett Court apartments.
Meanwhile, developers are also believed to be looking forward to the sale of Adelaide’s neighbouring DIT Aungier Street Campus on 2.5 acres which is expected to come to the open market this year with a €100m price tag.