For Sale - Eir Network Management Centre, Citywest
The EIR Network Management Centre Citywest, offered for sale, seeking offers in excess of €38 million
Dublin 19th September 2018 – Property Advisors CBRE are delighted to offer a prime office investment opportunity, in the well-established Citywest Business Campus, to the market for Sale by Private Treaty. EIR Network Management Centre comprises a landmark three storey modern office block with single-storey laboratories and extends to 7,199 sq m (77,490 sq ft) of office accommodation, together with a generous provision of 260 car spaces at surface level.
The landmark building is situated on an elevated site and benefits from excellent connectivity, impressively overlooking the N7 to Naas motorway, one of the busiest national routes. Citywest Business Campus has established itself as a premier suburban business location and currently boasts all the amenities required of a world class business centre including restaurants, coffee shops, service stations and childcare facilities. Internally the property is finished to a modern specification to include raised access flooring, generous floor to ceiling heights, a large open plan canteen facility and full height reception area. The EIR Citywest Network Management Centre is of strategic importance to the overall portfolio.
The entire Network Management Centre is occupied by Eircom Ltd on a 25-year FRI lease from September 2010 with no option to break, boasting an unexpired term certain of 17 years. The asset is for sale with a rent of €2,225,114 per annum and is subject to fixed uplifts upon review in 2025 and 2030. Throughout the term the rent will increase by 32% generating a guaranteed uplift in income of €720,000 per annum over the remainder of the lease.
Eircom Limited t/a Eir is the largest telecommunications operator in the Republic of Ireland and are major providers of fixed-line and mobile telephone services along with internet and broadband services. In April 2018 a 64.5% majority stake of EIR was acquired by a consortium led by NJJ Telecom Europe (“NJJ”), part of NJJ Group, the private investment firm owned by telecoms investor Xavier Niel, alongside Iliad SA (“Iliad”), a fully integrated operator in France with nearly 20 million subscribers. Following the announcement of the majority share acquisition in early 2018 Eircom Finance bond yields contracted sharply and have recently stabilised below 2.3%, reflecting the increased investor confidence in the company following the deal.
In the Dublin suburbs, the H1 2018 take-up totalled 37,017 sq m representing almost 22% of total office take-up; on the back of this leasing momentum vacancy rates in the suburbs of grade A stock currently stands at 5.24%. Office investment activity was also very strong in H1 2018, with the sector comprising over 46% of all H1 transactions.
The EIR Building in Citywest is guiding €38 million which can be analysed to reflect a NIY of 5.40% with two fixed uplifts increasing the yield to 6.21% in 2025 and 7.15% in 2030. The sale offers investors an opportunity to acquire 17 years of secure fixed income. A capital value of €490 per sq.ft is reflected.
The sale of the EIR Building in Citywest offers an outstanding investment opportunity which presents investors with a rare prospect to acquire a secure long income profile to an excellent covenant for over 17 years.’’
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 135 employees, we work with occupiers, investors and developers of office, industrial and logistic, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie