JACK FAGAN
Commercial Property Editor
Four fully let office buildings in Dublin's south inner city are going on the market today in another significant sale of a property investment portfolio.
Sean O'Brien of property advisers CBRE is quoting an overall figure of €30 million for the office blocks which are being sold on behalf of Bank of Scotland (Ireland).
The four buildings in the Iveagh Collection are 46 St Stephen’s Green, which was held by Garret Kelleher’s Shelbourne Developments; the recently enlarged Molesworth House on South Frederick Street; the P Elliott owned Verschoyle House on Lower Mount Street and Liam Carroll’s Pembroke House on Upper Pembroke Street.
All four buildings will be of interest to both domestic and overseas buyers due to the prospects of rental growth through strong asset management and the fact that the portfolio will give new owners an unusual opportunity to gain a significant foothold in the central business district.
Overall rental yield
The overall rent roll of €2,060,905 will give an investor an initial yield , after acquisition costs, of 6.57 per cent.
With a total floor area of around 5,69sq m (61,25sq ft), the €30 million asking price will equate to €489 per square foot (€5,264 per square metre).
Investors will be able to bid on individual properties as well as on the combined portfolio.
The offices at number 46 St Stephen’s Green are among the best located in the city with frontage onto Hume Street as well as St Stephen’s Green.
The multi-let building extends to 1,304sq m (14,045sq ft) and is currently producing an overall rent of €532,075.
The guide price of €10.5 million would show a net initial yield of 4.85 per cent.
The tenants are MCAP Europe Ltd – the aircraft leasing arm of the Mitsubishi Corporation – Apollo Aviation Management, the Housing Finance Agency and Comgest, the international asset management company.
Incidentally, the adjoining building on Hume Street is owned by IPUT, the strongly performing pension fund, which recently refurbished its headquarters and another building on St Stephen’s Green next to the block about to be sold.
CBRE is quoting €4.5 million for Molesworth House, a five-storey over basement mixed use building extending to 860sq m (9,264sq ft), which would give an initial return of about 5.3 per cent.
The ground floor retail unit has been let for the past 10 years to Therapie, a hair removal and skin care clinic.
Natural light
The four floors of office accommodation overhead are a mixture of open plan and cellular office, all with excellent natural lighting.
The building is currently producing an income of €253,390 and has a weighted unexpired lease term of 5.25 years.
A price of €7.5 million is being sought for Verschoyle House, a top quality third generation block built in 2001 and extending to 1,625sq m (17,499sq ft).
The net initial yield would be 9.98 per cent.
The five-storey over basement building is currently producing a rent roll of €782,440 and has a weighted unexpired lease term of 2.3 years.
Occupiers include the Pensions Board, BCK Accountants and Life Strategies Milman.
CBRE is also quoting €7.5 million for Pembroke House, located on the south side of Pembroke Street between Fitzwilliam Square and Leeson Street.
The property is comprised of five interconnecting four-storey over basement Georgian office buildings along with a five-storey extension to the rear.
The building has a floor area of 1,904sq m (20,500sq ft) as well as 11 surface car parking spaces to the rear.
The complex is currently producing a rent of €500,000 from a subsidiary of Regus, the serviced office provider. The lease has an unexpired term of 11.27 years.
A €7.5 million selling price would show a return of 6.38 per cent.
