Joint agents Savills and CBRE have brought the One Spencer Dock office building to the market at a guide price over €240 mln, reflecting a net initial yield of 4.7% and a capital value of approx. €11,399/m² (€1,059/ft²).
One Spencer Dock is a landmark building in a prime office location. The property was developed by Treasury Holdings in 2007 and designed by Scott Tallon Walker Architects. The property is constructed to the highest standard with three interconnecting blocks. Block C1 and C2 incorporate full height atria and are linked via a glazed bridge to Block C3.
One Spencer Dock comprises a nine storey over basement modern building which provides Grade A office accommodation with 100 basement car parking spaces. There are also two vacant retail units at ground floor level offering investor’s value add potential. The entire property extends to approximately 21,054 m² (226,624 ft²).
The office accommodation is 100% let to PwC under three separate coterminous leases. PwC signed a 25 year lease from April 2007 on which expires in April 2032 giving an unexpired term certain of over 16.5 years which is unsurpassed in this cycle. The total rent is €11,779,241 p.a..
The leases incorporate upward only rent reviews every five years with the next review in April 2017. The investment offers strong reversionary potential with a current passing rent of approximately €538/m² (€50/ft²).
PwC is Ireland’s largest professional services firm and offers a range of expertise to well-known national and international clients. PwC employs over 1,800 people in their head office, One Spencer Dock and a further 1,000 employees are based throughout Ireland. Prior to relocation to the One Spencer Dock location, PwC had their headquarters in the Gardner House.
Spencer Dock and the wider docklands area is gearing up for the next phase of development which will see new office, retail and residential developments transforming the skyline. This will in part come from the future development of the remaining Spencer Dock site, the Project Wave site, City Quay and the Exo Building adjacent the 3 Arena.
According to Savills, this sale offers investors an opportunity to acquire one of the most prestigious investments in the Dublin office market and is likely to appeal to existing international and domestic investors as well as new entrants. It comes on the back of successful prime sales such as Block R, Riverside 1 and 4&5 Grand Canal Square in a market where the opportunity to acquire scale diminishes.
Fergus O’Farrell, Director, Savills Ireland commented: “As a core investment, this is unsurpassed even in an international context. With over 16 years unexpired on the lease term to an internationally recognised covenant, incorporating five yearly upward only reviews, this is one of the last scale Grade A office blocks with these characteristics remaining in the Dublin market”.
Source: Savills
