Two newly restored Georgians and a modern mews in a top D2 office location are likely to attract a good deal of interest, writes Jack Fagan

Property consultant Finnegan Menton is expecting strong interest in some of the first property investments to go on the market this year - two newly restored Georgian houses and a modern mews in Dublin 2 - because of the quality of the office buildings and the strength of the covenants. All three are for sale by private treaty.

Nicholas Corson of the agency is quoting €4.5 million for 8 Fitzwilliam Place, a corner house of 377sq m (4,060sq ft) which along with three car-parking spaces is producing an annual income of €159,335.

Investors are likely to be impressed by the high standard of the refurbishment which was carried out two years ago. The upgrading also included the installation of a lift to serve all floors.

During the restoration work, lease terms were agreed with Aircastle Advisors (Ireland) Ltd, an international aircraft leasing company at an annual rent of €135,335. The lease runs for nine years and 11 months and is guaranteed by Aircastle, a US publicly quoted company which had a turnover of $350 million and profits of $51 million in 2006. The basement level is held under a separate lease by Mary Fitzgerald PR at an annual rent of €24,000.

Nicholas Corson says the overall rent is now highly reversionary given that Georgian office rents for this grade of accommodation have risen from €398 per sq m in 2006 to €484 per sq m (from €37 to €45 per sq ft). He estimates that the current market rent of the Aircastle space is around €195,000. Should the building make €4.5 million, the initial yield will be 3.2 per cent but once the rent is reviewed it will move to close to 4 per cent.

The agent is also guiding €5.25 million for another refurbished cut-stone Georgian office building at 37 Fitzwilliam Place and a modern three-storey mews to the rear at 37 Leeson Close. Both buildings are producing rents of €177,000 which would give an initial return of 3 per cent.

There is every likelihood that the mews building will be sold separately for around €1.75 million to either an investor or a company looking for impressive offices.

The 162sq m (1,750sq ft) building is let to Owens DDB Advertising on a four years and eight months lease to the end of 2009 at a rent of €65,000.

It is accessed through an attractive stone arch at the end of Leeson Close. There are concrete floors between the three levels and obvious scope to extend the building at both the front and rear. There are four on-site car-parking spaces.

Finnegan Menton is suggesting a price of €3.5 million for 37 Fitzwilliam Square which is occupied by Sigmar Recruitment Ltd with a parent company guarantee from Newcourt plc.

The lease is for a term of nine years and 11 months from October, 2005. The passing rent is €90,000 per annum. The basement is occupied by KB Associates, a fund administration business, at a rent of €22,000.