Potential yield increases to 9.77pc for office investment near Dublin Airport

The property in Santry is currently 93pc occupied

Donal Buckley

An office investment in Santry near Dublin Airport has been brought to the market at a reduced price and increased yield.

After implementing an asset management plan over the last 12 months, Northwood House has benefitted from the addition of over €100,000 to its annual rent roll while also improving the rental tone in the building.

Now QRE Real Estate Advisers are guiding a price in excess of €9m for the investment which reflects a net initial yield of 9.77pc based off an annual rent of about €970,000.

The price represents a discount to the €10.75m which QRE quoted for it in 2021 when the net initial yield equated to 7.46pc based on the then annual contracted rent of €882,112 per year.

The property is currently 93pc occupied and Jonathan Hillyer and Bryan Garry of QRE say this shows the occupational resilience of the building’s income and the loyalty of the majority of the tenants to the building.

Furthermore upon letting of two small vacant suites bringing estimated rental income to over €1m, this would show a reversionary yield of over 10.5pc. The new guide price reflects a capital value of €202 per sqft, which is significantly lower than replacement cost.

Existing occupiers such as Shell, Mazda, Amdipharm and Celtic Anglian Water have renewed their commitment to the building

Extending to 44,444 sqft, the property comprises a modern five-storey over basement, third-generation office building providing income from 24 office suites, along with 115 surface and basement car-parking spaces.

Existing occupiers such as Shell, Mazda, Amdipharm and Celtic Anglian Water have renewed their commitment to the building while being joined by new occupiers such as UFO Drive. It is understood further new tenants have agreed terms.

Existing corporate occupiers within the overall campus include Electric Ireland, BMW, Regus, Affidea, Greencore and Santry Sports Surgery Clinic, with Europcar, Ikea and Decathlon located nearby.

Constructed in 2008, Northwood House is a well-maintained office building providing flexible floorplates of 1,400 sqft. to 4,800 sqft., raised access flooring, zoned gas-fired central heating, with kitchenettes and WCs to each suite. A number of units feature air conditioning as part of a tenant fit-out and BER ratings in the building range from B to C.

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