JLL and CBRE market Dublin offices two years after previous sale

Investors Pimco and Brehon Capital have mandated JLL and CBRE to market four small government-let offices in the centre of Dublin, less than two years after acquiring the assets as part of the €152 mln Ulysses portfolio.

JLL and CBRE are quoting a guide price in excess of €28.5 mln for the four-asset Harp sub-portfolio.

The buildings at 48-49 North Brunswick Street, 31-35 Bow Street, 89-94 Capel Street and 21-24 Green Street are located within the Dublin 1 and 7 districts.

The portfolio, which has an overall weighted unexpired lease term of approximately 8.5 years, is currently producing a rent of €2.37 mln per annum.

According to JLL and CBRE, pricing at this level will provide an initial unleveraged return of about 8% per annum and a capital value per sq ft of €327 based on a total floor area of 87,110 sq ft (8,080 m2). About 98% of the income is generated from government tenants or government-backed tenants.

The agents said in a statement: 'With long-term Irish government bonds currently trading at less than 1.3% per annum, Harp Portfolio offers investors a significantly higher return potential. It is likely that investors would be able to secure attractive debt terms on the portfolio, which will enhance the returns and could provide investors with immediate double-digit return depending on the loan to value ratio they choose to apply.'

Global investment manager Pimco and Dublin-based Brehon Capital acquired the 25-asset Ulysses mixed-use portfolio in the latter part of 2013. Their joint venture, renamed Tetrarch Capital, has worked since then to upgrade the underlying properties through capital expenditure, minimising vacant space and re-gearing of existing tenants. Two other office buildings have already been sold from the portfolio.