A 10-year-old office building at the North Park in Dublin 11, sold by Nama in 2013 for €6.5 million when it was partially vacant, is now fully occupied and back on the market at €11.25 million.
Dessie Kilkenny of Savills is handling the sale of J5 Plaza for SW3, a three-man Irish-UK investment group (Ned Truman, Adam Rooney and Tom O'Mahony) that has also acquired several other Dublin investment properties in recent years.
The same consortium is also seeking a buyer at over €15 million for the Dublin Business School on Aungier Street, which it bought in early 2015 for more than €10 million.
The J5 Plaza, located close to Charlestown Shopping Centre and exit 5 of the M50, has an overall capacity of 5,780sq m (62,221sq ft). Most of the space was originally let to the HSE at a particularly low rent of €118 per sq m (€11/sq ft).
The final floor in the building has since attracted considerably higher rents between €193 and €209 per sq m (€18- €19.50/sq ft) from three additional tenants, including a company responsible for the Exam Centre.
Even with the below-average rents initially set for the J5 Plaza, interested parties planning to pitch for the investment will be able to bank on a return of 6 per cent. Mr Kilkenny said the building has “credible reversionary potential” to bring in about €1.2 million annually.
Only last week American food group Kellogg’s agreed a rent of €363 per sq m (€33.75/sq ft) for its new European headquarters under construction at Dublin Airport.
The higher-than-expected rent settlement is expected to have a knock-on effect on other office rents in north Dublin.
According to Mr Kilkenny, investments in the Dublin suburbs are being targeted by a variety of investor types because of strong occupancy rates, attractive growth forecasts and, in many cases, below-replacement value pricing.
