Friday 19 July 2019

Many commercial sales have gone under the radar

Sale: Pearse Street was one of two fully-let office blocks that sold for €27.2m
Sale: Pearse Street was one of two fully-let office blocks that sold for €27.2m
Donal Buckley

Donal Buckley

A NUMBER of commercial properties which sold in the last six months have gone under the radar in terms of media coverage, and included among them are some of the sales by agents Knight Frank.

These include the sale by Avestus investment managers of two fully-let office blocks at 51-54 Pearse Street and Magennis Court in Dublin 2, which sold for €27.2m.

At the time of their marketing launch the pair produced a rent-roll of €1.32m, suggesting a gross initial yield of 4.85pc.

One of them, 51-54 Pearse Street, extends to 25,619 sq ft and combines a refurbished Georgian building to the front with a modern six-storey office block. It is let to Henry J Lyons Architects and Aquacomms. Also in this sale was Magennis Court, a five-storey office block which extends to 17,490sq ft. Its tenants include John Daly Atlantic Language Galway.

Nearby on Lombard Street, an Irish family bought Joyce House for its €8.5m guide price, suggesting an initial return of 5.25pc. The four-storey red-brick building produces a rent-roll of €481,710 and is occupied by the Government's Register of Births, Deaths & Marriages as well as a section of the Health Service Executive. Extending to 15,920 sq ft, its rent equates to €30 per sq ft.

In another deal, Emerald Investments, a company with Irish and UK properties, paid more than €27m for a portfolio of five adjoining modern and period office buildings on Dublin's south quays.

Ross Fogarty, of Knight Frank, had been guiding in excess of €25m on behalf of Nama for the mixed portfolio, which was 87pc occupied.

At the time of its launch it was producing rental income of €2.1m.

Located on Merchants Quay, directly opposite the Four Courts and Dublin's legal quarter, the tenants include a number of legal firms and the Courts Service, as well as BDO, HSE and Dublin City Council.

This overall portfolio extends to more than 108,000 sq ft and the buyers have potential to increase the rent-roll by letting vacant units and upgrading its office space. At the time of its marketing launch its rents ranged from €12 to €29 per sq ft.

Also in the legal quarter, an office suite at Capel Buildings, off Capel Street, sold for €3.25m, or €150,000 over its guide price. The suite, which extends to 5,662 sq ft, is let to McDowell Purcell Solicitors on an eight-year lease for an annual rent of €235,000. The rent equates to a rate of €37 per sq ft, if €2,500 is attributed to each of the 10 secure basement car parking spaces that come with the property. That suggests a gross initial yield of 7.23pc.

A Victorian office building at Northbrook Road, Dublin 6, between Leeson Street and Ranelagh, sold for €5m to a private investor. This two-storey over garden level red-brick extends to 9,100 sq ft, and was sold with vacant possession.

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