OfficeInvestment: A former tram shed, now used as a highly fashionable office facility at Gilford Road in Sandymount, Dublin 4, is to be sold as an investment through agent Finnegan Menton.
The cut-stone building provides 661sq m (7,125sq ft) of offices over two levels and has many of its original features intact, including exposed timber roof trusses.
Finnegan Menton is guiding over €4 million for the investment which would show a net initial yield of 3.5 per cent and at least 4 per cent when the next rent review takes place.
Unusually, there is guaranteed rental growth at every rent review for the 29 years remaining on the lease. The rent review provisions provide for an increase at each review of 15 per cent or an increase in line with the Consumer Price Index, whichever is the higher.
The building is let to the Irish International Communications Group (IICG) on a 35-year lease from January 1st, 2000, at a current rent of €153,000 per annum. There are no break options in the lease.
IICG, one of Ireland's oldest advertising agencies, is a subsidiary of BBDO which in turn is owned by the OmniCom Group, a conglomerate with a turnover of over €750 million.
