Refurbished East Point blocks on the market at over €21m

The first two office blocks developed in East Point Business Park in the Dublin docklands in 2001 are to be offered for sale after undergoing a complete refurbishment and being let on a new 15-year lease to German-based Arvato Finance Services. Weir Conway Chartered Surveyors is guiding more than €21 million for the investment which will show a net yield of 6.4 per cent.

The offices, known as Blocks JK, have been owned by the same group of investors since they were built inside the entrance to the park with expansive views over Clontarf Bay right out to Howth Head.

East Point has been one of the most successful business parks in the Dublin area with more than 1.5 million square feet of offices completed by Earlsfort Centre Development still attracting virtually full occupancy.

More than 6,000 workers are employed in over 50 companies based there including Google, Oracle, Virgin Media, Bank of Ireland, Cisco, Datalex and Deutsche Bank.

Blocks JK have an overall floor area of 5,878sq m (63,272sq ft) over three floors together with landscaped gardens and 110 surface car parking spaces. Arvato has spent more than €5 million on the refurbishment of the blocks and the installation of new air conditioning, two new lifts, meeting rooms, offices and corporate restaurant.

A recent feasibility study has shown that an additional 20,000 to 35,000sq ft of office accommodation could be added to blocks JK by erecting a further floor on top of the building and by extending the floor plates to the rear.

Arvato occupied the offices as sub-tenants from 2008 and in 2015 negotiated a new 15-year full repairing and insuring lease with the owners starting in April, 2016. The headline rent of €1.4 million works out at €215 per sq m (€20 per sq ft) along with €1,000 per car-parking space.

Recent lettings in the park have exceeded €242 per sq m (€22.50 per sq ft) while car-parking spaces are now valued at €1,500.

Arvato Finance Services forms part of the Arvato Bertelsmann Group founded over 175 years ago and now employing 66,400 staff in 40 countries. Group profits in 2015 were reported at €1.1 billion.