Joint agents JLL and Eastdil Secured have brought Dublin office Five Hanover Quay to market with a guide price of €190 mln.
The suggested price provides a net initial yield of 4.25%, the brokers said, assuming standard acquisition costs of 8.46%.
Situated in the city's docklands area, the 160,000 ft2 (14,800 m2) scheme was developed by Irish fund Targeted Investment Opportunities ICAV and has been built to a Leed Gold standard.
According to the agents, the property is currently fully let to two technology tenants, DocuSign and Aptiv, providing an annual rent of over €8.75 mln per annum, and with a weighted average unexpired lease term of 12 years.
'The current, low rents at an average of €54 per ft2 across seven floors also provide reversionary potential when compared to prime city rents which are reaching over €60 per ft2,' the agents added.
'Demand is being driven by large existing multinational companies who are experiencing strong domestic Irish growth in response to solid performance in the Dublin market,' commented John Moran, JLL Ireland CEO.
'Occupiers such as Facebook, Google, Salesforce, Hubspot and WeWork acquired space in the last 12 months. These occupiers are looking for larger-sized space, with an increase in larger deals as a result,' Moran added.
The Dublin office market continues to perform strongly and above long-term average levels, according to JLL data. 2018 was a record year with take-up of 3.9 million ft2, while 2019 has seen the strongest level of take-up ever recorded in the first quarter of the year.
