InvestmentsThe Dublin investment market continues to loosen up this week with the planned sale of 52 Broom, a modern stand-alone office building at Broomhill Road in Tallaght. It is producing a rental income of €1.06 million which would show an initial yield of just under 6 per cent.
DTZ Sherry FitzGerald and HWBC are handling the sale of the four-storey over basement block which has a floor area of 4,800sq m (51,667sq ft) and 183 car-parking spaces at both basement and surface level. The guide price is €16 million.
The building is let to a number of tenants including the Prem Group, Helix Health Ltd, Paddy Power and the South Western Health Board. There is also a licence agreement with Vodafone. The agents say there are a number of long term leases running from 2001, 2002 and 2007. The leases include break options in either year 10 or year 15.
The selling agents point out that the immediate area is maturing with higher value office and mixed-use developments replacing the traditional industrial and showroom buildings in a similar manner to what has happened at Sandyford in recent years.
One of the strong selling points is the relatively low capital cost of the building at around €8,080 per sq m (€286 per sq ft) and €10,000 per car-parking space compared to offices in other suburban locations such as Sandyford.
The agents say that the changing face of the Tallaght area is evident on many fronts, including proposals for a large scale expansion of The Square and the 12,200sq m (131,320sq ft) office development at Tower Cross. The area has been transformed dramatically as a business location as a result of the Luas. The Metro West line would also be a major help to the area.
