Investors looking to secure a foothold at the heart of Dublin’s traditional central business district may be interested in the opportunity presented by the sale of two adjoining Georgian offices at 46 and 47 Merrion Square and their associated mews buildings at Stephen’s Place.
Extending to a total area of 1,555sq m (16,745sq ft), the investment is being offered to the market in one or more lots by agent Colliers International at a guide price of €10.5 million.
Numbers 46 and 47 comprise two adjoining, four-storey over basement Georgian buildings, measuring 526sq m (5,667sq ft) and 588sq m (6,330sq ft) respectively. Considerably larger than average Georgian buildings, which typically extend to 390sq m (4,200sq ft), the subject properties have generously-proportioned rooms, spacious common areas and striking entrance hallways. Both buildings also retain many original period features with attractive cornicing, sash windows and shutters, ornate fireplaces and ceiling roses throughout.
The sale also includes two modern mews buildings and car parking to the rear, accessed via Stephen’s Place. The two-storey modern mews buildings – numbers 46 and 47 Stephen’s Place, extend to a net internal area of 212sq m (2,286sq ft) and 203sq m (2,191sq ft) respectively.
Tenants
Colliers is offering the buildings for sale by way of separate lots.
Number 47 Merrion Square and the mews, 47 Stephens Place, are both occupied by NewsWhip Media Limited under two leases running coterminous. 47 Merrion Square is let at €229,850 per annum while 47 Stephen’s Place is producing €81,580 per annum. The two leases have 5.5 years remaining which investors will find particularly attractive. Colliers is guiding €5.7 million for 47 Merrion Square & 47 Stephen’s Place, equating to a net initial yield of 4.97 per cent.
Number 46 is occupied by three tenants – the Association of Consulting Engineers of Ireland, Two Ten Health and the Institute for Study Abroad – and is generating combined rental income of €203,220 per annum. The Two Ten Health lease contains annual fixed uplifts, with the next uplift occurring on October 1st 2020. This will increase the passing rent for the entire of 46 Merrion Square to €215,220 per annum.
An incoming purchaser will also have the opportunity to substantially increase the rent roll through letting the vacant mews at 46 Stephen’s Place. The estimated market rent for this property is about €85,000 per annum.
Colliers are guiding a price of €4.8 million for 46 Merrion Square and 46 Stephen’s Place, equating to a net initial yield of 3.85 per cent.
The entire meanwhile is available for sale at a guide price of €10.5 million, equating to a net initial yield of 4.46 per cent.
Michele McGarry, director of investments at Colliers International, says: “The sale of two adjoining, Georgian buildings of exceptional quality together with the mews buildings and parking, is something of a rarity and it presents buyers with a superb opportunity.
“The long unexpired term on number 47 Merrion Square and 47 Stephens Place and the potential to immediately let the vacant mews in 46 Stephen’s Place will be particularly attractive to investors.”
