Miele HQ building and United Drug warehouse guiding €7.35m

A top-grade commercial property investment on the Naas Road in west Dublin looks set to attract a high level of bidding when it is offered for sale from today through agent TWM.

The easily recognisable Miele Ireland headquarters and a United Drug warehouse fronting on to the N7 from Citywest Business Campus have a guide price of €7.35 million, which will show a net initial yield of 7.2 per cent and a capital value of €149 per sq ft.

The high-profile site extends to 1.21 hectares (3 acres) and is one of only four Citywest businesses fronting on to the busy N7 motorway. It adjoins printing presses operated by Independent News & Media and has an exit from the N7 vie Bianconi Avenue. The 67 surface car parking spaces beside the building can be extended further.

Miele occupies the two-storey office building, including its well-known “Experience Centre”, under a 25-year lease that will run until 2033. There is an outstanding rent review due since May.

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Advantage

The current rent of €410,000 has the advantage of a parent company guarantee. The two-storey building has an overall floor area of 1,777sq m (19,127sq ft), combining open plan and cellular offices, raised access floors and air conditioning.

United Drug (Wholesale) Ltd uses the entire warehouse of 2,813sq m (30,278sq ft) for both storage and distribution purposes. It occupies the premises under a one-year lease from July 2016, at a passing annual rent of €165,000. The tenancy is determinable by three calendar months notice from either the landlord or the tenant.

Citywest looks set to expand further with planning approval already granted for 526 residential units to the south of the roadside property. The Miele-United Drug facilities at 2024 Bianconi Avenue are highly rated, given their prominent location and strategic access within 1.8km of two new Luas stops at Citywest Campus and Fortunestown.

Patricia Ward of selling agents TWM believes that the site profile, covenant strength and asset management initiatives will attract a wide audience given the accessible lot size and yield.