Wednesday, 29 April 2015
Savills puts Dublin’s Riverside 1 on the market for €75 mln (UK)
A majority share (70.8%) in one of the premier Grade A office blocks to be constructed in Dublin’s South Docklands has been brought to the market by Savills with a guide price of €75 mln.
‘Riverside 1’ is largely considered Dublin’s most striking modern office building. This sale will represent one of the last remaining office investments in Dublin South Docklands to trade in this cycle of the Irish property market recovery.
The building is let in its entirety to McCann FitzGerald, one of Ireland’s leading law firms. In the immediate vicinity of Riverside 1 is an urban quarter, comprising modern office blocks, high quality residential developments, retail units, hotels, bars and restaurants. In addition, the area is now one of the city’s primary cultural and entertainment locations with the Bord Gais Energy Theatre, Aviva Stadium and 3Arena all close by.
The overall investment (100%) is currently generating a rent of approximately €5.15 mln per annum. The lease offers investors an unexpired term of in excess of 16.5 years. The level of income security is unprecedented among recent office investment activity.
The asset benefits from upward-only rent reviews on a 5 yearly basis, thus giving investors further security of income. Leases granted since 2010 are drawn on open market rent reviews. The next rent review is in October 2016, offering investors an ideal opportunity to benefit from the rising rents of the office market.
The sale is being handled by Fergus O’Farrell and Dessie Kilkenny of Savills Ireland who commented: “An opportunity to acquire one of Dublin’s most recognized office buildings is extremely rare; therefore we expect demand from a wide variety of investor types either seeking to expand an already established property platform in Ireland or alternatively those seeking to enter the market for the first time.”