The first floor of a modern office building at Sandyford Business Park in south Dublin is likely to be of interest to private investment funds when it is offered for sale and leaseback at a higher than usual yield of 8.34 per cent.
Turley Property Advisors is quoting a guide price of €2.9 million for the floor in Paramount Court, which extends to 808sq m (8,700sq ft) and includes 16 basement-level car parking spaces. The office facility is let to PrePay Power, a pioneer provider of prepaid electricity, on a new 15-year lease with a tenant break at the end of year 10.
The passing annual rent for the first five years is €250,000, rising to €275,000 at the end of year five. This equates to a rent of €279 per sq m (€26/sq ft), plus €1,500 per car space, rising to €310 per sq m (€28.85/sq ft). The parking space will remain at €1,500.
Paramount Court dates from 2002 and is located on Corrig Road between the junctions of Blackthorn Road and Carmanhall Road. The office complex is about 500m from the Stillorgan Luas station and 10km south of Dublin city centre.
The office block has a high-specification fit-out, including raised floors, suspended ceilings, air conditioning and a mixture of open plan and cellular offices. Shared use of the lifts and stair core provide access to the ground and basement floors.
According to Kevin Daly of Turley Property Advisors, the planned sale was an excellent investment opportunity that provided a guaranteed rent increase of 10 per cent in year six, underpinned by a strong tenant covenant.
