Credit Suisse Real Estate Investment Management has mandated Cushman & Wakefield to sell a Dublin office building that the Swiss financial group has owned for just over a year.
The asking price for One Grand Parade is in excess of €23 mln, equating to a €5 mln or an increase of 28% compared to the price paid by Credit Suisse REIM in 2015.
Credit Suisse REIM acquired One Grand Parade from Irish bad bank NAMA for €18 mln in the first quarter of 2015. It was part of the three-asset Tara Collection. Union Investment Real Estate acquired the rest of the collection, two office buildings leased by Facebook at Grand Canal Square, for €232 mln.
One Grand Parade offers 2,900 m2 (31,534 square feet) of office accommodation over six floors and basement parking for 15 vehicles.
The scheme is located on Charlemont Bridge at the junction of Grand Parade and Ranelagh Road, next to the Luas light rail station at Charlemont Street. The office space is fully let to Zendesk International, Oasis Global Management and Embassy of the State of Kuwait.
The passing rent comes to just over €1 mln per annum, based on rents ranging from €26 to €52.50 per sq ft (€279 to €565 per m2). There is room to grow this further in a relatively short time as the weighted average unexpired lease term is three years, with the standard expiry and break options. C&W says there is also 'potential for immediate uplift' on the settlement of the outstanding Oasis rent review.
The property adviser is seeking offers in excess of €23 mln, reflecting a net initial yield of 4.29% assuming standard purchasers costs of 4.46% and a capital value per sq ft of €730.
The office scheme is situated in an area overlooking the City's Grand Canal in the Dublin 6 region, about 10-minutes walk from the core city centre office market in Dublin. In its brochure for One Grand Parade, C&W says the Grand Canal micro location is set to see a cluster of new office development which will further improve critical mass and lead to it becoming part of the city's office core.
The immediate area has already attracted a variety of occupiers including Amazon, Zendesk, EY, Investec and Hilton Hotels. US-based developer Hines has lodged a planning application for a 15,647 m2 office scheme at Two Grand Parade and another proposed mixed-use scheme nearby would deliver 24,344 m2 of office space by 2019/20.
