Cosgrave Group to sell €19m landmark harbour office development

One of Dublin’s best-known developers, the Cosgrave Property Group, is selling the West Pier Business Campus – a landmark office development overlooking Dún Laoghaire Harbour.

Agents JLL are quoting €19m, which would reflect a net initial yield of 10.89pc, on the basis of its current annual rents of €2,274,806.

A purchaser could enhance their return by increasing the rent roll, as about 15pc of the office space is vacant. It also has potential for residential conversion which could attract premium prices because of the sea views and nearby transport nodes.

West Pier campus, named after the nearby harbour wall and popular walk, comprises three interconnected five-storey office buildings, extending to 108,576 sqft. Eight tenants occupy 85pc of its space.

“The strategic opportunities for asset management abound, including the potential to extend the relatively short weighted average unexpired lease term of 1.7 years,” says Ollie Lyons of JLL. “Existing tenants are already in discussions to renew leases, while interest from potential tenants exists for two vacant floors spanning 16,711 sqft.”

Its development potential arises from its 2.08-acre site which has 130 meters of frontage to Old Dunleary Road.

Under current town centre zoning, a range of uses could be developed including residential use, aligning with Dún Laoghaire Rathdown County Council’s development plan 2022-2028.

A feasibility study by MCORM architects suggests potential for 256 residential units, and a planning report by Brock McClure planning consultants supports this assessment.

“West Pier Business Campus offers flexibility to buyers, catering to those seeking a high-yielding office investment with substantial asset-management potential, as well as residential developers eyeing a prime waterfront site, with short-term income to offset planning costs,” said Ollie Lyons.

Cosgrave Property Group’s bestknown development is the George’s Quay office development beside Tara Street Dart station, which often features on pictures of Dublin city skyline.

The group’s most recent sale was of Gulliver’s Retail Park in Santry, Dublin 9, which went for €29.5m. Also this year the group sold Meridian Point Shopping Centre in Greystones, Co Wicklow, for more than €7m – more than €1.5m over its guide price.

They were also reported to be close to a sale of their Radisson Blu St Helen’s hotel in south Co Dublin, with a price of up to €45m being mentioned.