€6.5m for freehold interest in two office blocks in Woodford Business Park, Santry

A high-quality office investment with strong opportunities to enhance its value in the vibrant office letting market goes on the market today at Woodford Business Park in Santry, Dublin 17.

Patricia Ward and Sara Dillon of DTZ Sherry FitzGerald are quoting €6.5 million for the freehold interest in two office blocks, which will show an initial yield of 6.54 per cent and an equivalent yield of 11.28 per cent.

Most of the space is let to four tenants, who pay combined rents of €443,960 per annum.

There are also two fully fitted ground floor office suites available to let, with floor areas of 522sq m (5,623sq ft) and 681sq m (7,337sq ft), along with generous parking for 111 cars.

DTZ says that even at a nominal rent of €161 per sq m (€15 per sq ft) and €1,000 per car space, there is scope for a new owner to push the overall rental income up to €942,145 and bring the return on the investment up to 13.87 per cent.

The investment covers two blocks with an overall floor area of 4,714.57sq m (50,743sq ft).

One of the buildings extending to 1,085sq m (11,803sq ft) is occupied entirely under two leases by the US pharmaceutical distributor McKesson Ireland. The leases have a further two years to run.

The second block, divided into three-self contained office units with separate entrances, is shared by fashion suppliers Oxendales, the healthcare giant Abbotts and sister firm AbbVie.

Overall, the weighted average lease has another 2.8 years to run. When the break options are ignored, the expiry date is extended to 5.94 years.