A building let on a long lease to Dublin Business School (DBS) at Aungier Street, Dublin 2, goes on the market from today at a guide price of more than €15 million. Agent Savills is handling the sale, which reflects a capital value of €5,726 per sq m (€532/sq ft). The yield will be just over 4 per cent.
The four-storey over basement building extends to 2,618sq m (28,180sq ft) and is located in the heart of Dublin’s central business district beside South Great George’s Street and within a few minutes’ walk of Grafton Street.
The current yearly rent of €675,000 is due to be reviewed next December against a background of upwards-only reviews, with 10.3 years remaining on the lease and no break options. The current rent is on the low side at €258 per sq m (€24/sq ft) but with the review to be based on the same terms as offices or educational rents, Kevin McMahon from Savills said he expects that there is now a “genuine opportunity to enhance the income returns”.
DBS was established in 1975 and is Ireland’s largest independent third-level college with more than 9,000 students. The lease is guaranteed by Kaplan Inc, an international provider of educational and career services.
The building occupies a corner location at the junction of Aungier Street and Lower Longford Street, close to a range of restaurants and cafes. It dates from the 1930s and has been modified and upgraded over the years and is now composed of classrooms, lecture rooms, offices, a library and a canteen with an entrance foyer fronting on to Aungier Street.
McMahon said he expects strong interest in the building due to the long unexpired term to run and the excellent income enhancement potential from the upcoming rent review.
