Investors looking for a higher than usual initial yield of 11.4 per cent on an investment property are likely to consider an industrial building at Orchard Avenue in Dublin’s Citywest Business Campus, which has come on the market through CBRE.
Natalie Brennan of that agency is guiding €975,000 for the two-storey semi-detached office and warehouse unit extending to 603sq m (6,500sq ft), which is occupied by the security and outsouring company G4S solutions.
The tenant took a 15-year lease of the premises from September 2011, at a current rent of €116,000 per year.
There is a tenant break option in year 10, leaving an unexpired term of seven and a half years.
Rent reviews are set for every five years and are linked to the consumer price index subject to a maximum increase of 15 per cent. There are 16 car-parking spaces allocated to the company at both the front and rear of the building.
Brennan said the investment should trade well because of the strength of the covenant, the quality of the building and the popularity of the location.
