Limerick office portfolio at €25m offers 7.06pc yield
Agents Power & Associates are guiding a price of €25m for the Plassey Portfolio, a collection of three prime grade A office buildings at Limerick's foremost business campus - the National Technological Park.
One of the largest investment opportunities to be be brought to the Limerick market in recent years, the portfolio comprises three office properties - Clive House, Hamilton House and Hamilton House Block 2 - and is being offered for sale both as a single lot and in smaller lots.
Developed by the Brookvale Group, a leading developer of offices in the mid-west region, the offices are 92pc occupied by a number of high-profile tenants, including some of Limerick's major corporates such as Northern Trust, Cook Medical, Enet, QAD, Gilt Groupe and Icon.
The Plassey Portfolio occupies a landmark 7.58 acre site within the National Technology Park with a Site Area of 7.58 Acres. The portfolio's net floor area extends to a total of 12,396 sq m (133,432 sq ft).
Hamilton House is the largest of the three office properties being offered for sale and is fully let following the recent leasing by Cook Medical of a floor in the building. The WAULT for Hamilton House is 6.32 years to lease expiry.
Hamilton House Block 2 is occupied by Northern Trust and Xperi, with the remainder of the building being occupied by Xperi. This property extends to 3,739 sq m (40,254 sq ft). The WAULT is 11.28 years to lease expiry.
Clive House, which extends to approximately 3,716 sq m (40,000 sq ft), is the newest of the three office buildings, having only been developed by the Brookvale Group in 2015. Icon occupy two floors of the four-storey block while the Dublin Airport Authority (DAA) have recently taken a lease on the ground floor of the building. Fit-out of the DAA's new premises are due to get under way shortly. The WAULT for the property is 13.5 years to lease expiry.
The total rent from the portfolio is €1,844,240 per annum based on the existing lease income that is either contracted or agreed with occupiers. There is potential to increase income from the portfolio in the short term from leasing the last remaining floor at Clive House, which comprises approximately 929 sq m (10,000 sq ft) and from completion of rent reviews which are due this year. The quoting rent for the first floor at Clive House is currently €16.50 per square foot per annum.
Given the lack of supply of grade A office accommodation at the National Technology Park, the Plassey Portfolio is well positioned to benefit from any demand arising now and into the future. The three offices now being offered to the market have in recent years established a strong track record in securing numerous FDI companies for the campus.
The National Technology Park with its excellent accessibility, high-quality fibre optic infrastructure and proximity to University of Limerick and the M7 (Dublin/Limerick) motorway is widely acknowledged among corporate occupiers as being a prime location in the Mid West region. ACI have recently established a major data centre at the campus.
The Plassey Portfolio's guide Price of €25m reflects a net initial yield of 7.06pc after making allowance for standard purchaser costs of 4.46pc.