A Swiss Life Asset Managers’ fund has acquired the Lennox Building, located at 47-51 South Richmond Street in Dublin for €27m, reflecting a net initial yield of 4.8%. Completed by developer Oakmount and Core Capital in March 2019, the asset comprises an office and restaurant space over basement, ground and three upper floors totalling 33,448ft².
Weston Office Solutions Limited, a Dublin-based service office provider trading as Iconic Offices, occupies the majority of the building under a lease expiring in 2044. The ground floor restaurant and basement ancillary accommodation are let until 2044 to The Workman’s Club Limited, a subsidiary of Press Up Entertainment Group which is one of Ireland’s leading leisure and hospitality companies.
Phil Sturdy, Investment Director at Mayfair Capital, commented: “This asset matches our client’s income requirement and reflects our investment strategy of investing in high-quality buildings, on long leases, to deliver our investors attractive, low-risk income returns. Dublin has had strong take-up levels in recent years and attracted a range of expanding tech businesses. The Lennox Building is located in an improving business area of the city, opposite the proposed Charlemont Square mixed-use development.”
Renato Piffaretti, Head Real Estate Switzerland of Swiss Life Asset Managers, said: “The acquisition fits perfectly to our investment strategy with a focus on properties with stable value in European metropolitan regions. Therefore we offer institutional investors access to a real estate portfolio broadly diversified by country and sector.”
Mayfair Capital Chief Executive James Thornton commented: “We are pleased to have acted for the Swiss Life fund in making its first purchase in Ireland; the first since Mayfair Capital became part of Swiss Life in November 2016. This follows two acquisitions we made for the same Fund in Oxford and Leeds in early 2018 and total some €113.4m (GBP 100m). Ireland remains an attractive market for overseas investors and the yields available are higher than those available in Switzerland and Mainland Europe”.