Two Sandyford offices for €3.35m offer yields of up to 7pc
MELFORD Property Consultants have brought two office investment opportunities in Sandyford in south county Dublin to the market.
In the first instance, the agents are quoting a price of €2.5m for Unit 5B at Sandyford Business Centre on Burton Hall Road. Recently refurbished, this two-storey modern office building extends to a gross internal area of 751.17 sq m (8,086 sq ft), and is fitted out to an excellent standard in a mix of glazed cellular and open-plan office space, with double-height feature reception, canteen and toilet facilities.
While the property has 23 surface car parking spaces, it is located within a short walk of the Luas Green line at Stillorgan.
A lease agreement is in place with CareWorks Limited from Q2 2017 for a new 20-year FRI lease at €183,000 per annum (€19.78 per sq ft plus €1,000 per car parking space), with a tenant break at years 10 and 15. With rents recovering strongly in Sandyford, the agents say there is significant potential for this starting rental level to increase significantly in the medium term. The property’s €2.5m price reflects a yield of 7pc based on the current rent.
In the case of the second Sandyford property, Melford are seeking in excess of €850,000 for Unit C on the ground floor of the Apex Business Centre. Located near the corner of Blackthorn Drive and Blackthorn Road, and adjacent to the Beacon Hospital and the Beacon Hotel, the subject property extends to 329 sq m (3,546 sq ft) and has eight car parking spaces.
The investment is fully let to a secure tenant on a five-year FRI lease from 2015, which expires in July 2020. While the office delivers annual rental income of €52,500 currently, the agents say there is potential to increase this in 2020 to ERV of €98,000 per annum (€25 per sq ft with €1,200 per car parking space).
At €850,000, the unit offers a net initial yield of just under 6pc, with potential to increase this to excess 11pc, at reversion in 2020.
Melford are quoting €2.5m for Unit 5B Sandyford Business Centre