The Government's Office of Public Works was one of the few buyers of office property in Dublin City centre recently as it has paid €5.65m for 22/25 Clare Street, Dublin 2, which is occupied by the Department of Transport.
OPW had been paying a rent of €670,000 for the property, suggesting that the deal will have paid for itself in less than nine years.
The implied yield of 11.8pc also seems a very good deal as the price is way over the 7.5pc yield which is reputed to be the current standard for prime Dublin offices. Indeed, at one stage last year it was suggested that the vendors, Royal Liver, might achieve as much as €7.7m from the sale.
CB Richard Ellis acted as agents for the vendor which is disposing of most of its Irish investment properties. Its 16 properties had been valued at around €120m and include McDonald's fast food outlet and four other shops on Grafton Street, Hodges Figgis and Waterstones on Dawson Street and three Henry Street shops.