The prospect of an 8.18 per cent net initial yield, coupled with the fundamentals of location and asset quality, saw strong interest and bids from a number of parties for Unit 8 at Plato Business Park in Damastown, Dublin 15.
Having been offered for sale at a guide price of €1 million by industrial specialist Harvey, the property was sold recently to a private investor for €1.15 million, reflecting a net initial yield of 7.12 per cent, after standard purchaser’s costs of 9.92 per cent.
Unit 8 comprises a modern, semi-detached industrial warehouse facility with office accommodation, extending to 1,163sq m (12,519 sq ft). It has a clear internal height of 8m (26ft), two level-access doors and parking to the front and rear.
The property is leased in its entirety to 7-Day Auto Ltd until August 2024 at a current annual rent of €90,000. The lease is full repairing and insuring subject to a schedule of condition and the tenant has been trading from the unit since 2004. There is some reversionary potential on the passing rent which equates to €77.39 per sq m (€7.19 per sq ft).
Plato Business Park is a well-presented and actively-managed scheme within the wider Damastown Industrial Park. It is well located, only 1km from the N3 Dublin/Navan Road and 4.9km from Junction 6 of the M50, providing easy access to Dublin Airport and Dublin Port Tunnel.
Commenting on the sale, Siobhan Convery of Harvey said: “This investment opportunity commanded very strong levels of interest and we had a number of solid bidding parties. The eroding term was not an issue for most investors, who were more drawn to the key underlying investment fundamentals of location, rental growth, modern building, and the shortage of good quality buildings in the market.”
