An office investment let to British telco group BT is new to the investment market this week at €8.75 million through Knight Frank.
The modern block, set over three levels in Dundrum Business Park, is producing a rent roll of €677,000 a year. Most of this (€650,000) comes from BT with a further €27,000 from two telecommunication masts let to Three Ireland and Three Ireland Services.
BT’s rent is due to increase to €700,000 in May 2021 up to the expiry of its lease in May 2026.
Once BT’s rent review kicks in, the net initial yield of 7.3 per cent will increase to 7.66 per cent.
The block extends to 2,240sq m (24,111sq ft) and has 49 surface car-parking spaces. There are two entrances with lobbies, stairwells, service cores and lifts at opposite ends of the building. This allows for future subdivision into two self-contained offices with separate access and services if required.
Dundrum Business Park in Dublin 14, which was developed between 2001 and 2008, comprises 16 separate office/workspace units. It is about five minutes walk from Windy Arbour Luas stop and is accessed off the Dundrum Road.
The block was last on the market in early 2015 at €5.75 million.
