Both private investors and institutions are expected to pitch for a newly completed office investment off Sir Rogerson's Quay in the Dublin docklands. It is expected to make around £19 million when it is sold by private treaty through Gunne Commercial and Druker Fanning and Partners.
The 38,500 sq ft building at 6/7 Hanover Street East, Dublin 2, is being sold on behalf of Danninger Ltd, a company controlled by Mr Liam Carroll of Zoe Developments, who has recently assembled a 14.97 per cent stake in Dunloe Ewart. Danninger is fitting out the four-storey over basement building which is at the corner of Hanover Street East and Lime Street The building has been let to the OPW at an initial rent of £1,133,750 per annum. The 25-year lease does not provide for any break options.
Allowing for 40 car-parking spaces in the basement, the office rent breaks back at £27.50 a sq ft, a figure that has already been surpassed in the area. Danninger was offered rents of £30 per sq ft for individual floors but opted instead for a single letting with the State. A selling price of £19 million would provide a net yield of 5.5 per cent.
The high-quality building is located in an area due to undergo dramatic changes in the next few years as several adjoining sites, including one on Sir John Rogerson's Quay owned by Dunloe Ewart, are redeveloped.
The selling agents expect strong interest in the investment not only because of the high-quality covenant but also because of the scarcity of investment opportunities.
