The new commercial property season gets under way today with the planned sale of a successful retail and office block at The Park in Carrickmines, Dublin 18, which is expected to make in excess of €15 million.
At that price, Savills estimates it will show a net initial yield of 6.24 per cent and reflect a capital value of €3,821 per sq m (€355 per sq ft).
The Iveagh Building is well located alongside The Park, one of Ireland’s busiest retail parks which was acquired last October by the IPUT property fund for about €78 million.
The wide-ranging retail facilities, along with a significant office element, were developed in the mid-2000s by Michael Cotter's Park Developments.
Warren PrivateClients and AIB Private Banking bought the first phase of the park in 2006 for about €100 million. A year later, it paid almost as much again for the second phase.
The four-storey-over-basement building now going for sale has seven retail units on the ground floor and fully occupied office space on the upper floors which are producing an overall rent roll of €977,985.
The top floor of the block has already been sold off separately. The overall floor area extends to 3,920sq m (42,200sq ft) and includes 148 basement car parking spaces.
Eight-year lease
Vodafone
Ireland
is paying a rent of €343,767 for 1,508sq m (16,242sq ft) on the first floor, while a similar volume of space on the second floor is occupied by a Vodafone subsidiary, Netshare, at €220,265.
Vodafone’s eight-year lease runs from last May and includes a break option in 2018.
The Netshare letting also provides for a break in three years’ time. With Vodafone paying a rent of €2,045 per sq m (€19 per sq ft) and Netshare availing of a rent of €1,470 per sq m (€13.56 per sq ft), there is clearly scope to increase the rent roll in the coming years.
Vodafone is paying in the region of €950 for car parking spaces.
The highest retail rent of €109,000 per annum is paid by BB’s coffee house and restaurant which extends to 198sq m (2,134sq ft).
Vanilla Pod has a rental bill of just over €98,000 for a doubled-sized unit extending to 255sq m (2,748sq ft).
Other adjoining tenants are Carphone Warehouse which pays a rent of €58,695; Barry & Browne which contributes €53,340; and Subway which pays €35,000.
Marguerite Boyle of Savills said the well-diversified and fully let property was at an accessible ticket size for both private and institutional investors.
“Due to the strong occupier demand, well-serviced location and good tenant line-up, we anticipate a strong level of interest in the investment.”
