Prime Office Investment Property
Dublin, 3rd October 2016 – CBRE are delighted to be offering a unique office investment opportunity to the market in the sale of the freehold interest of the Treasury Building in Lower Grand Canal Street, Dublin 2. The Grade A office building is let under a 10,000 year lease to Ambiorix Limited entitling the freeholder to 33.33% of the passing rent. The agents will be guiding a price of €33,000,000 reflecting a net initial yield of 5.25% and a capital value of €800 per sq. ft. Ambiorix had a right of first refusal to acquire the freehold, however, all required notices have been served and the freeholder Percy Nominees is free to offer this investment for sale in the open market
The Treasury Building is a high quality Grade A office block in a prime office location which benefits from a view of the Grand Canal. The area has seen a significant uplift with the influx of international companies such as Twitter, Google and Facebook. In addition many of Irelands leading legal and accountancy practices are located in the area. Other occupiers in the area include Hines, Accenture, BT Bord Gáis and Stripe The location has a wide range of amenities with the Bord Gáis Energy Theatre, the Marker Hotel, notable developments in the area together with numerous restaurants bars and convenience stores.
Recent developments in the area include the refurbishment of Block 7 Clanwilliam Court by Aviva, Cumberland House by Hibernia and the One Building by Jones Investments all fully let. On the other side of Grand Canal Street the office block known as Kestrel House has been completely demolished and is being replaced by a 51,000 sq ft office known as Velasco. Future development is expected in the Clanwilliam Centre with Hibernia having established a significant holding
Access to transportation is unrivalled with Barrow Street Dart station within a 5 minute walk and numerous bus routes on the nearby Lower Mount Street, Baggot Street and Leeson Street. Also the increasingly popular Dublin Bike scheme has a station immediately outside the building.
The Treasury Building is a former mill which was converted into Grade A office accommodation in 1989. The entire property extends to approximately 11,619 sq m (125,066 sq ft) over 6 floors with 110 car parking spaces and 24 spaces on a licence agreement from Clanwilliam Place.
The Treasury Building is let to high calibre tenants including NTMA, NAMA & Perrigo with a passing rent of €5.482 million per annum entitling the freeholder to €1.83 million annual income. The passing rents range between €24 to €46 per sq ft, so there are significant uplifts due at rent reviews with the prime office rent standing at €57.50 per sq ft and expected to reach €60 per sq ft by the end of the year. Two rent reviews from 2015 are currently under negotiation. There is an average unexpired lease term in excess of 5 years.
The asset offers excellent asset management opportunities to drive rents at the upcoming rent reviews.
The Treasury Building offers excellent flexibility with large open plan floor plates extending to 1,900 sq m, over 20,000 sq ft, which can be used for open or cellular office space. Internally the property is finished to a high standard and benefits from a clear floor to ceiling height of approximately 5.4 metres from raised floor to underside of suspended ceilings.
This is a unique opportunity to take a stake in one Dublin’s most prestigious buildings occupied by institutional quality tenants. There is an opportunity to take advantage of the regeneration in the Boland’s Mill area.
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.