Nine industrial units in south Dublin hit the market yielding over 8pc
Knight Frank is quoting €2.6m for a portfolio of industrial units in south Dublin.
The portfolio is made up of nine units at Sandyford Industrial Estate.
Between them, the units are producing annual rental income of €231,510 which implies a net initial yield of 8.5pc.
The properties can be sold as one or more lots. The properties are being sold in a number of lots ranging from Excess €250,000 to €2.6m. The lots are split out as follows: Lot 1: Units 61A & 61B Lot 2: Unit 63C Lot 3: Unit 64A Lot 4: 66A - 66F Lot 5: The Entire.
The units range in size from approximately 213 sq m to 519 sq.m. and total 2,053.14 sq.m. They are situated on the eastern side of Heather Road in Sandyford Industrial Estate in South Dublin. The units are part of a development of a number of similar blocks of small light industrial and office units. The buildings immediately adjacent to the subject properties are in industrial use, however, there are some modern office developments such as Heather House and Q House very close by.
All units are of concrete portal frame and block wall construction with modern insulated metal deck roofs and red brick/metal deck facades. The properties benefit from full height standard grade loading doors to the front/side of each of the premises. Units provide warehouse accommodation and ancillary two storey office accommodation to the front elevations.
General office specification includes plastered and painted walls, integrated wall sockets, a mixture of slab and suspended ceilings with both recessed and boxed fluorescent lighting and electric storage heating.
The properties are let to nine tenants typically on long term 35 by five year FRI Upward Only leases from the 1990's and deliver a currently annual rent roll of €231,510 equating to an average rent per sq m of about €92.14. There is a Weighted Average Unexpired Lease Term (WAULT) of 10 years across the portfolio.
"This is likely to prove very enticing for investors seeking long term secure income in an established and sought after industrial location such as Sandyford," said Knight Frank's Ross Fogarty.
Sandyford Industrial Estate has witnessed much development over the past 10 years with significant office, retail and residential developments being built. Sandyford boasts a host of amenities to including Bewley's Hotel, Beacon Court Hotel and Beacon South Quarter providing occupiers with superb access to shopping, restaurants, leisure and fitness outlets on their doorstep.
The existing LUAS station which provides access to the city centre within 25 minutes, is located within a 5 minute walk of the property.
The industrial market has begun to improve in recent months, although it is still nowhere near the highs of the Celtic Tiger days.
However rents are now trending up, with some agents reporting rents of as much as €10 per square foot being agreed - a n increasse of 30pc on this time in 2013.
Industrial has lagged the wider reovery up to now but it is clear that interest in the market is now on the type of upward curve that hasn't been seen for years.