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CIE aims for €22.5m. from Spencer blocks

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CIE hopes to achieve €22.5m from the sale of their freehold interest in the office block on North Wall Quay

CIE hopes to achieve €22.5m from the sale of their freehold interest in the office block on North Wall Quay

CIE hopes to achieve €22.5m from the sale of their freehold interest in the office block on North Wall Quay

State transport company CIE is hoping to achieve €22.5m from the sale of its freehold interest in the landmark PricewaterhouseCoopers (PWC) offices and other offices on North Wall Quay, Dublin 1.

Agents Lisney point out that with the freehold interest generating €1.75m rent in the current year, the asking price reflects a net initial yield of 7.45pc.

PWC's Irish head office is located at three of the blocks, C1-C3, at Spencer Dock, which comprise 21,049sqm. Blocks C4-C5, also known as Kilmore House, are let to ABN AMRO, Ecclesiastical Insurance Office Plc and is also part occupied by PWC.

The majority of the occupational leases are for a term of 25 years from 2007 to PWC, representing 20 years secure income amounting to 74pc of the income. The rent review clauses provide for mainly old style "upward only" reviews with the exception of the more recent lettings to Ecclesiastical.

CIE as head lessor is entitled to 17.5pc of the adjusted rents and other revenue arising from the buildings and the estimated freeholder's income for the period April 2012 to March 2013 amounted to €1.75m.

Ann Hargaden, of selling agency Lisney, says "that while there may be some variations in this income, there is also potential for this income to improve as rent free periods expire, remaining space is let, and if certain deductible items become no longer relevant. The unexpired term of the income is long with 20 years unexpired term under the PWC leases."

These are the largest office buildings to come to the market in recent times extending to over 31,331sqm with basement parking for 143 cars. Built in 2007, the properties are finished to a high specification.

Lisney has set October 25 as the closing date for public tenders unless previously sold. Positioned immediately adjacent to The Convention Centre Dublin, they are in the heart of the International Financial Services district.

Ms Hargaden expects the property to appeal to private and institutional investors both here and overseas.

"Some investors will view this as an excellent opportunity to attain a foothold in this trophy building with a view to possibly increasing their interest at a later date if the opportunity arises," she adds.

In addition, there are a number of overseas companies who specialise in such acquisitions. The yield profile is similar to that achieved for the One Warrington Place, Dublin office block, which was sold earlier in the year.

Indo Property