CBRE and Savills have begun marketing a 11,800 m2 office block in Dublin with a guide price of €90 mln that equates to a net initial yield of 5.18%.

CBRE and Savills have begun marketing a 11,800 m2 office block in Dublin with a guide price of €90 mln that equates to a net initial yield of 5.18%.

Block R is situated on Spencer Dock in the North Docklands, immediately adjacent to the National Convention Centre and Kilmore House.

The 127,000 square foot (11,800 m2) property comprises seven storeys offering Grade A office accommodation and three retail units at ground floor level. The building also includes 46 basement car parking spaces.

The office accommodation is 100% let to the Central Bank and the Commissioners of Public Works in Ireland, as well as the Nationwide Building Society.

The building generates annual rental income of €4.9 mln and has a weighted average unexpired lease term of 9.93 years.

CBRE and Savills said in a statement that the property offers 'strong reversionary potential' as over 40% of the office accommodation is currently passing at a rent of €30 per sq ft. The three retail units at ground-floor level are in shell condition and currently vacant, 'providing investors with value-add opportunities'.

Block R was designed by Scott Tallon Walker Architects, developed by Treasury Holdings and constructed by CMP Limited. Construction of the property was completed in 2008.

Fergus O’Farrell of Savills said: 'Given the high-profile location, security of long-term income from state bodies in conjunction with continued investor appetite for Grade A office buildings we anticipate a strong level of interest in the property'.

'The quality of the development will mean that Block R will appeal to both international and Irish institutional investors and this opportunity is well positioned to benefit from rental growth in the office market,' CBRE’s Colm Luddy added.