Two Sandy­ford of­fices for €3.35m of­fer yields of up to 7pc

Irish Independent - Business Week - - COMMERCIAL PROPERTY - Ronald Quin­lan

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

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