The opportunity to secure immediate rental income underpinned by a strong tenant covenant coupled with the prospect of delivering a major residential development in an area of proven demand should see interest from both Irish and international investors in the sale of Swords Business Campus on Balheary Road in north Dublin. Located just 1km from the M1 motorway and is a five minutes’ drive from Dublin Airport, the office and healthcare scheme sits on a site of 7.75 hectares (19 acres) and is being offered to the market on behalf of a syndicate of private Irish investors by agent TWM at a guide price of €50 million.
The office buildings on the campus extend to a gross area of 27,624sq m (297,000sq ft) and have in recent years undergone an extensive upgrade programme to improve their respective Ber ratings. The current owners have also implemented a more general sustainability plan at the campus which included the introduction of LED lighting, EV car-charging stations and a Go-Car rental station. The owners have also adopted a biodiversity plan involving the installation of Swift boxes, beehives, bug hotels, a pond and wetlands.
Quite apart from its provision of accommodation for traditional office occupiers, Swords Business Campus has established itself as a key location for companies involved in the life sciences and healthcare sectors. The scheme is home to numerous industry-leading companies and public bodies including CityJet, the CSO, the HSE and Convergys, all of which have been long-term occupiers.
The offices at Swords Business Campus currently produce total passing income of €3.2 million, representing a net initial yield of 5.81 per cent with a future reversionary yield of 8.3 per cent based on leasing vacant units only. Some 42 per cent of the current rental income is accounted for by State bodies (the CSO and HSE), while 21 per cent of the income is derived from the healthcare and life sciences sectors. The office accommodation at Swords Business Campus is complemented by 804 surface car-parking spaces. In addition, there is planning permission for an additional 48 spaces.
In terms of its potential for residential development, KMD Architecture has undertaken a feasibility study for a major apartment scheme at the north end of the campus adjacent to the planned Metro station. The study suggests there is capacity to deliver four nine-storey blocks comprising a total of 372 apartments above a semi-basement car park, subject to the subject site being zoned and securing planning permission.
Swords Business Campus is located within an area zoned “ME” in the Fingal Development Plan, 2017-2023 for which the objective is to facilitate opportunities for high-density mixed-use employment generating activity and commercial development within the Metro Economic Corridor. The site is also located within Masterplan area MP8.B, referred to as Estuary Central. The campus is situated within a 10-minutes walk of the planned Estuary Metro station.
Michele Jackson and Patricia Ward of TWM say they expect to see good interest in Swords Business Campus as it offers “excellent asset-management potential for the new owners through the additional leasing of vacant accommodation, further investment in sustainability and through securing permission for the development land in line with the arrival of the Metro in 2032”. Interested parties may seek access to the data room for the sale by contacting Michele Jackson, Patricia Ward, or Russell Cleere at TWM.
