Tetrarch Capital sells healthcare office for €1.6m
One of Ireland's most active property investors, Tetrarch Capital, has sold a modern Dublin city centre office building for €1.611m - €361,000 over its guide price - at an auction.
The offices at 25-27 Middle Gardiner Street was one of a number of health-related properties which featured in the Allsop auction which generated €12.2m from the sale of 76 lots.
It is let to the Health Service Executive until 2027 and earns €112,500 a year in rent from its 686.44 sq m, so the purchaser, a high-net-worth Irish investor, could enjoy a gross initial yield of 6.98pc.
It was originally part of the Liam Carroll Ulysses Portfolio that was bought by Tetrarch with the support of PIMCO in 2013.
Headed by Michael McElligott, Tetrarch has sold a number of properties since it acquired them during the crash. It also plans to develop a hotel and an aparthotel on two sites in the city centre.
Allsop auctioneer Richard O'Neill believes the HSE tenancy and the location close to the Mater and Temple St hospitals, could have been among the factors which attracted competitive bidding.
An unrelated healthcare investment sold in Moate, Co Westmeath, for €736,000. Located at 19-53 Moate Retirement Village, it comprises a block of 35 apartments which generates €47,280 a year in rent from 10 of the units.
The price suggests an average of €28,025 per unit. However the low price per unit reflects its location within a larger retirement complex which limits potential for generating rents from a wider market.
A medical consultancy suite, Unit 35, Galway Clinic, near Galway City sold for €588,000, or €178,000 over its guide price. Extending to 93sq m, it is let to Western ENT Consulting at €40,000 a year suggesting a gross yield of 6.8pc.