The Plaza complex in Tallaght has been acquired by Davy on behalf of a private client for about €18 million.
The price paid for the property represents a premium of 20 per cent on the €15 million guide price set by agent Knight Frank when it brought the mixed-use scheme to the market last year on behalf of the receiver, Declan Taite of Duff & Phelps.
While it is understood contracts were exchanged on the complex a number of months ago, the closure of the deal is said to have taken place only recently, following the completion of a schedule of works agreed to by the vendor. The sale of the property is understood to have attracted strong competition involving a number of parties.
Completed in 1999, the Plaza briefly consists of a six-storey over double-basement block, comprising the 122-bedroom Plaza Hotel, three floors of office accommodation, three ground-floor retail units and over 500 car-parking spaces provided in the double basement and at surface level. The property is situated on a high-profile corner site, adjoining the Square Town Centre, with extensive frontage to both the N81 and Belgard Road.
The Plaza Hotel is being operated under a short-term management agreement giving the purchaser the option of either renewing the existing contract or seeking vacant possession.
Long-term leases
The office accommodation extends to 7,199sq m (77,489sq ft) over three floors and is let to the OPW under long-term leases at a current rent of €540,200 per annum. The fifth floor is vacant, with the option to lease the space or (subject to planning permission) to convert it to residential use.
The ground-floor retail units are let to Low Price Supermarkets and Fitzpatrick Club with one vacant unit.
The total rent from the office and retail element of the complex is €652,350 per annum with a weighted average unexpired lease term of over eight years.
There is scope to secure additional rental income in the short term through the refurbishment and subsequent letting of the complex’s 2,199sq m (23,666sq ft) of vacant office space.
The complex offers more significant potential to add value in the medium to long term through the development of additional hotel rooms, or residential accommodation, subject to planning permission.
