Dublin,
14
October
2015
|
10:00
Europe/Dublin

Prime Sandyford Office Investment Opportunity

Fenward House, Sandyford, Dublin 18

Dublin, October 2015 - CBRE have just launched a prime investment opportunity to the market the recently refurbished Fenward House. The office is immediately behind the Atrium Buildings bought earlier this year by Blackstone with the Luas Sandyford stop across the road.

Fenward House extends to 19,750 sq ft with 34 car parking spaces and has full Grade A specification with raised access floors and air conditioning. The building was completely refitted with refurbished lifts and new modern finishes to the reception area. The refurbishment was overseen by Urban Solutions – Property Development Managers who have been involved in a number of high profile refurbishments including 7 Hanover Quay, 6 Georges Dock and the Irish Life Centre.

The building has recently been let to Slainte Technologies Limited a leading international technology company that provides healthcare software & services that drive efficiencies & quality in the healthcare industry. They are Europe’s fastest growing healthcare technology company (Deloitte Fast 500, 2013 EMEA). The lease is for a term of 10 years from June 2015 at an initial rent of €389,500 increasing to €409,250 at June 2016 with a further fixed uplift to €429,000 as at June 2017. The higher stepped rent breaks back to just over €19 per sq ft and €1,500 per car space which offers investors excellent potential for rental growth when the rent is subject to an open market review in 2020. The lease is on full repairing and insuring terms fair wear and tear excepted and there are no breaks in the lease.

The recovery in the prime suburban office markets has lagged Dublin’s City Centre but is now starting to accelerate. With the office vacancy rate in the South Suburbs running at only 8.0% at present and prime City Centre rents at €52.50 per sq ft office rents in prime locations such as Sandyford are likely to continue rising. The proportion of take up in the south suburbs varies from year to year, ranging from 23% in 2008 to 65% in 2012. On average of 43% of office take-up in the south suburbs of Dublin each year occurs in the Sandyford area specifically. A sign of the confidence in the location is the fact that Green REIT has commenced the next phase of development in the nearby Central Park.

CBRE are guiding a price of €5.0 million which would provide an initial yield of 7.5% increasing to 7.8% in 2016 and 8.2% in 2017. According to selling agent Colm Luddy this investment is likely to appeal to both private investors and some of the smaller funds. It offers an opportunity to get exposure to the Sandyford market and improving rental values. It’s let to a strong covenant and in one of the best locations in Sandyford with the Luas on your doorstep.

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 2016 revenue). The company has more than 75,000 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.

In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 165 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, business rates and compulsory purchase, valuations and research. Please visit our website at www.cbre.ie or www.cbre.ie/ni.