UK Reit New Frontier Properties is understood to have secured about €12.8 million from the sale of a prime logistics building at Stadium Business Park in Ballycoolin, Dublin 15.
The sale of Unit 1, which is let to Dunnes Stores, to a French fund was completed last week. New Frontier acquired the property, for its part, in October 2017 for €8.65 million. At the time of its purchase, the 7,287sq m (78,441sq ft) detached industrial/warehouse headquarters was occupied by Viking Direct (Ireland) Ltd, a global company forming part of Office Depot (one of the largest suppliers of office stationery in the world), on a 20-year full repairing and insuring (FRI) lease from August 24th, 2007, at a rent of €743,518 per annum.
Following its acquisition, New Frontier oversaw a significant refurbishment of the property before letting it to Dunnes Stores on a new long-term lease. Dunnes occupies the building, which sits on a 3.65-acre site, under the terms of a full repairing and insuring lease for 15 years from March 2022, incorporating a tenant break option in March 2032. The annual passing rent is €775,000, and the first rent review is due in March 2027. The new owner stands to secure a net initial yield of 5.5 per cent on their investment.
Unit 1 is at the entrance to Stadium Business Park, an established logistics scheme that offers occupiers quick access to the N3 and the M50 motorway.
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The property has a clear internal height of 39ft (12m), eight dock levellers, two level-access doors, an ability for HGVs to circulate the building, dedicated trailer parking and a passenger lift.
The sale of Unit 1 was handled by industrial specialists Harvey. BNP Paribas Real Estate advised the purchaser. Both agents declined to comment on the transaction when contacted by The Irish Times.
