A potentially high yielding office investment has come on the market in Dublin 8 quoting more than €4.65 million.

The building – VistaTEC House at 700 South Circular Road – is currently producing a rent of €437,225 per year, according to agent Colliers International.

This rent roll is from two tenants but, should a vacant ground floor suite of 167sq m (1,800sq ft) be let, the annual income could increase by a further €31,500.

If it sells for its asking price the investment will show a net initial yield of 9 per cent and a reversionary yield of 9.6 per cent following the letting of the vacant office suite.

These yields allow for purchaser’s costs at 4.46 per cent.

Office spec

VistaTEC House is a modern three-storey office building of some 1,812sq m (19,500sq ft) with 14 car-parking spaces.

It is close to the junction of Suir Road and South Circular Road, some 3km from the city centre and 1km from the M50/N4 junction.

St James’s Hospital is a short walk away.

The main tenant is VistaTEC, which occupies the first and second floors under a 25-year lease from December 2000.

There are another 10.25 years unexpired on its lease with no break options.

The company pays rent of €300,000 per annum, which equates to €236.8 per sq m (€22 per sq ft) and €1,500 per parking space. It occupies eight spaces.

Beamish and Crawford occupies 395sq m (4,250sq ft) on the ground floor.

Its nine-year and nine-month lease has two years left to run and the passing rent is €137,225 per annum to include four parking spaces.

The property has been well maintained throughout and specification includes air conditioning, raised access floors and passenger lifts.