JLL markets Dublin office block at 10% yield

Property adviser JLL has started marketing a Dublin city centre office building, let to the Irish government, at a 10% initial yield.

The two-building asset is located at George’s Court & 90 North King Street, Smithfield, Dublin 7, and it is being sold via private treaty on behalf of the receiver, David Carson of Deloitte.

JLL said in a statement that this was an 'excellent opportunity' to acquire a modern city office premises with Irish government tenants at a guide price of €21.3 mln, or a 10% initial yield. The two adjoining office blocks extend to 11,245 m2 with 6 stories over 68 basement car parking.

90 North King Street extends to more than 4,000 m2 with 25 car spaces. It is fully let to the Commissioner of Public Works in Ireland on a 20-year lease from 1 April 2008. There is a tenant break option at end-March 2018 subject to 12 months written notice.

Georges Court extends to over 7,000 m2 with 43 car spaces. The ground and first floor offices are also let to the Commissioner of Public Works on a 20-year lease from 1mid-December 2008. There is a tenant break option in mid-December 2018 subject to 12 months written notice. The fourth floor is let to the Law Society of Ireland on a 10-year lease from January 2013 with break options at year 6 and 7.

The total current rent is €2.2 mln per annum, with 90% of the income from Government bodies.

There are a further three floors and two ground floor retail units which are vacant extending to 3,910 m2 with 21 car spaces. Jacqueline Fitzpatrick of JLL commented, 'A potential investor could benefit from the recent upsurge in tenant demand for modern city centre office space and a shortage of suitable supply. These floors may also suit an expansion of the current tenants’ requirements subject to negotiation. This could provide a new purchaser with an attractive asset management play to increase the yield profile by letting the vacant floors'.