Wednesday 17 July 2019

Two industrial properties pitched at moderate investors go on market

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Donal Buckley

Donal Buckley

TWO separate Dublin industrial/warehouse investments have been brought to the market by Harvey, the industrial property specialist, which is guiding €995,000 and €1.3m for them.

The more valuable of the pair is Unit 34B Rosemount Business Park, Dublin 11, a modern warehouse and office unit extending to 14,380 sq ft with a yard to the front. It was recently refurbished and benefits from a 10-metre internal height. Let to Richard Austin Alloys, aluminium and stainless steel stockholders, its lease is guaranteed by the UK parent company, and has more than 10 years to run.

Kevin McHugh, of Harvey, says that with a current passing rent of €99,000, which equates to just €6.88 per sq ft, its rent is well below market level. Both a rent review and tenant break option are due in April 2024. The asking price equates to a net initial yield (NIY) of 7.1pc.

In the western suburbs, Centro House, Bluebell Avenue, Dublin 12, is a semi-detached industrial/warehouse and office unit extending to 17,179 sq ft with a shared side yard.

Its 0.6-acre site is located in an area proposed for rezoning to 'Regen' which suggests potential for residential institution, offices, hotel, motor sales and health centre developments.

Centro is let to Fast Casual Distribution Limited and guaranteed by Eddie Rockets (Ireland) Limited. Let on a 10-year lease from October 2018 at an annual rent of €95,000, there is both a market rent review and tenant break option in October 2023. The tenant has executed a deed of renunciation which would allow the landlord to regain vacant possession in 2028. Its asking price of €995,000 equates to an 8.8pc NIY.

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