ANOTHER UK BUYER has swooped into the Dublin commercial property market and picked off a well secured office investment at a net yield of 8 per cent. Property investors London and Regional have paid just under €20 million for the Eircom Management Centre at Citywest Business Campus in Dublin 24. The 25-year lease does not provide for any break options.
The sale terms are likely to set a benchmark for other Dublin office investments due to come on the market in the coming months.
The management centre forms a critical part of the strategic national telecommunications network.
The 7,427sq m (79,945sq ft) building is used as Eircom's national network management centre. The property also includes 250 on-site parking spaces.
The terms of the sale allow stepped rents to be increased every five years based on a 2.5 per cent per annum compound growth.
Between the first and fifth years, the rent will be €1.6 million. It will rise to €1,810,253 for years six to 10; then to €2,048,135 for years 11 to 15; €2,317,277 for years 16 to 20 and to €2,621,786 for years 21 to 25.
Maurice O'Neill of DTZ Sherry FitzGerald advised Eircom on the sale, while Sean O'Neill of O'Neill Strategic Property Advice acted for London and Regional.
