Commercial PremisesAn office investment portfolio in Ranelagh is for sale at €18m, writes Jack Fagan
A high quality office investment on Mountpleasant Avenue in Ranelagh, Dublin 6, is expected to make in the region of €18 million when it is sold at tender on June 19th.
Davin chartered surveyors is handling the sale of the Mountpleasant Business Centre, which has seven two-storey office units mainly occupied by architectural practices.
The campus stands on a site of three-quarters of an acre which at some time in the future may well be redeveloped for a residential scheme given its location in a solid Victorian redbrick area of Dublin 6.
The overall rental income from the investment is €630,000 per annum but, according to Peter Brown of Davin, rent reviews are occuring on a regular basis and as such, the estimated rental value (ERV) could be in the region of €850,000 per annum.
A selling price of €18 million would show an initial yield of 3.15 per cent and a reversionary return of 4.23 per cent.
The marketing strategy will be to sell the campus in one lot. However, it may also be disposed of in seven different lot sizes with prices probably starting at €1.85 million.
The present owner acquired the former Tayto factory on Mountpleasant Avenue around 12 years ago.
After remodelling and upgrading it converted it into individual two-storey units varying in size from 138sq m (1,484sq ft) to 600sq m (6,450 sq ft).
All buildings have practical, airy and functional open plan floor plates which make them particularly suitable to the architectural practices.
They all have high spec finishes including air conditioning and Cat 6 (e) wiring.
The tenants include Shay Cleary Architects, Bucholz McEvoy Architects, Donnelly Turpin Architects, the Coady Partnership, Taylor Architects and Group Design Architects. Other tenants include Eastern Vocational Education Ltd (part of the Eastern Health Board) and IN2 Engineering Design Partnership.
There are eight individual tenancies with rents varying from €47,200 to €110,000 per annum. Most of the leases are for periods of nine years and nine months though there is also one for four years and nine months. Rents generally range from €215 to €344 per sq m (€20 to €32 per sq ft).
Six of the buildings are arranged in a terrace and the seventh is a stand-alone unit. There are 30 on-site car parking spaces. The estate is professionally maintained.
One of the main selling points is the location of Mountpleasant Business Centre, within 2km of St Stephen's Green.
The Luas stop in Ranelagh is several hundred metres away as is Rathmines town centre.
