Business Irish

Thursday 14 November 2019

Warehouse cost slashed by half to €1.1m

THE asking price of an industrial site in south Dublin has been halved, to just over €1m.

Industrial specialists William Harvey & Co. is offering 45 – 48 Robinhood Industrial Estate in Dublin 12 for sale or to let.

The property was originally for sale for €2.2m but that has been cut to €1.1m. Alternatively the units can be had for a quoting rent of €120,000 per annum.

According to Harveys, this is a "fantastic opportunity to acquire a large detached warehouse in one of Dublin's long established industrial estates which is synonymous with wholesale cash & carry companies".

The property is a detached warehouse of 5,576 square metres (60,020 sq ft), comprising five equal spans of concrete frame construction on a site of approximately 1 hectare with extensive estate road frontage of 115m. Loading access is provided to the front of three of the spans via folding doors 4m.wide and 4.8 m high. The internal eaves height is 5m. The majority of the area in front of four of the spans is concrete surfaced.

The property is located off the Long Mile Road, 1.8 km from the Naas Road – M50 interchange, 2 km from the Ballymount – M50 interchange and 750m from the Kylemore LUAS Red Line stop. Occupiers within the estate include Euro General Retail, Musgrave Group, Trade Cash & Carry and Cagentt Cash & Carry.

While theindustrial market has been stagnant for a number of months, there have been signs of renewed interest in the market into 2014.

The current low prices are attracting investors, notably bottom fishers who feel that they missed bargains in the offices and residential sectors.

Views on the pace of the upturn on industrial rents vary and some agents point out that the upturn has had little impact on the older stock where rents can be less than half those attained by Grade A industrial space.

Jones Lang LaSalle (JLL) estimates that Grade A rents increased by about 9pc in the last 12 months while DTZ Sherry FitzGerald put the rate of increase as high as 18pc.

While speculative development has been thin on the ground in recent years, one developer has opted for speculative development by way of refurbishment and Mr Harvey earlier this week noted that some larger older buildings which have good characteristics in terms of height, site area etc. are already being refurbished.

He highlighted the former Manvik facility on Turnpike Road, Ballymount, which extends to 8,361 sq m on 6.8 acres. Its refurbishment is due for completion this month when Harvey will be quote a rent of €600,000. "Already there have been numerous expressions of interest," he adds. Harvey would not be drawn on the identity of the developer but it is believed to be motor distributor Pino Harris.

Harvey also cites the former Sydney Cooper 12,235 sq.m. facility in Ballymount which has been substantially refurbished as a new HQ following a pre-letting to Eurogeneral Retail.

In terms of both rental and sales activity, 2013 was the most active year since boom and represented a 210pc increase on 2009. Sales accounted for almost half of the deals, compared to just 7pc of deals in 2009.

 

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