Property advisors Knight Frank and Savills are to bring a portfolio of prime city centre office, retail and residential buildings in Dublin to the market with a guiding price of €160 mln.

Property advisors Knight Frank and Savills are to bring a portfolio of prime city centre office, retail and residential buildings in Dublin to the market with a guiding price of €160 mln.

With a total area of 30,300 m2, the Redwood portfolio offers a combination of long and medium-term income secured by strong international and Irish covenants. It generates an annual income stream of around €8 mln and a weighted average unexpired lease term of 10.7 years. It is 93% let.

All of the assets are located in prime Dublin 2 addresses.

Given the quality of the assets, the agents believe that the sale is likely to appeal to both existing international and domestic investors as well as attracting new entrants to the market. The guide price for the entire portfolio is €160 mln however investors will also have the option to bid for individual assets.

The office portfolio includes 2 Grand Canal Square; The Observatory on Sir John Rogerson’s Quay and One Clarendon Row. The retail and residential assets are located on Chatham Street and South King Street. The initial return over the entire portfolio is approximately 5.0%.

The portfolio includes 2 Grand Canal Square, one of Dublin’s most prestigious office buildings. Designed by Daniel Libeskind, the property occupies a high -profile site overlooking the Grand Canal basin and the Martha Schwartz designed Grand Canal Square. It comprises a striking eight storey over basement building providing 14,000 m2 of Grade A office space. The investment will produce an income of €4.44 mln per annum with potential for further uplift when the remaining ground floor suites are let. The quoting price is €86.0 mln equating to a net initial yield of 5.0%.

The Observatory is a six storey waterfront office building providing over 8,000 m2 of Grade A space and 1,200 m2 of live/work space set out in eight units and two retail units. Occupiers in the building include
financial service provider Morgan Stanley as well as online payment service provider Realex Payments.
Lease negotiations are at an advanced stage with a new occupier to take approximately 4,119 m2 and once completed will leave only a small ground floor suite of 115 m2 unoccupied. This letting will bring the total re
nt roll up to €2.1 mln per annum upon expiry of rent free periods. The quoting price for this asset is €40.0 mln, or a yield of 5.50% on the office building.