Prime Office Investment Opportunity
The Hynes Building, St. Augustine Street, Galway for sale guiding €14 million
Dublin 7th March 2018 – Property advisors CBRE are delighted to offer a prime office investment opportunity, in the heart of Galway City Centre, to the market for Sale by Private Treaty.
The Hynes Building is superbly situated in Galway City, predominately overlooking St. Augustine Street, a stone’s throw from Shop Street, Galway’s premier retailing street. The asset is currently producing an annual rental income of €707,998 across three different tenants. 98% of this income is generated from MetLife and Galway County Council, reflecting a very secure income profile, with a WAULT in excess of 7.5 years. In addition, there is potential to grow the income through letting the vacant space which extends to over 297 sq.m (3,200 sq.ft).
The Hynes Building has recently been extensively refurbished to an excellent standard and includes three storeys of modern office accommodation. The building comprises a modern 3 storey office development, which includes two interconnecting office buildings, namely The Hynes Building and St. Clares Walk to the rear. Combined the buildings extend to an overall area of approximately 5,277 sq.m (56,800 sq.ft). Externally the property includes a stone façade mixed with elegant large glass windows, allowing for a generous provision of natural light throughout.
The primary tenant in the building is MetLife who make up 76% of the current passing rent. The tenant is in occupation on a 10-year lease that commenced in October 2017 and is subject to an international MetLife Guarantee. The lease has a term certain in excess of 6.5 years, with no option to break until October 2024. The tenant’s income profile is highly reversionary with MetLife passing off a very low base rent of €12.3 per sq.ft. MetLife, who are one of the world’s leading financial services companies operate two offices in Ireland, one in Galway and one in Dublin.
In recent times, there has been very strong uptake of office accommodation in Galway. This is largely underpinned by the multinational appetite for the city as a European destination. New entrances in the FDI Sector included IP Switch, MetLife, The Mathworks, and Site Minder. Similar to other major cities in Ireland, office rents are rising in Galway as strong occupier demand is coupled with a shortage of office accommodation and falling vacancy rates.
The agents are seeking offers in excess of €14 million, reflecting a NIY of 4.66% and a stabilised yield of 5.20%, upon leasing the vacant space. A capital value of €250 per sq.ft is reflected.
Sandra Walsh, CBRE Capital Markets comments;
“The sale of the Hynes Building offers a rare opportunity to acquire a high-profile asset in Galway City Centre. The building boasts an excellent income profile and beautifully finished modern fit-out. This investment opportunity is likely to appeal to a variety of investor classes.’’
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About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), 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