Holbrook House, a high profile Dublin office investment and asset management opportunity is being brought to the market by Savills on the instruction of the Joint Receivers Kieran Wallace and Cormac O’Connor of KPMG.
The property is located in the traditional business district of Dublin City Centre just off Merrion Square on Holles Street. It is being offered for sale with a price tag in excess of €12million.
The property is currently let in its entirety to three key tenants The Open University, Pobal and the Commissioners of Public Works Ireland (OPW) with the average unexpired lease term exceeding 11 years. Additional income is generated through roof masts let to o2, Meteor and Vodafone. Combined annual rent roll is in excess of €900,000 per annum.
Built in 1968, the five-storey over basement property currently extends to approximately 21,162 sq.ft. of office space and additional accommodation with the benefit of 42 underground and surface level car parking accessed at the rear of the property off Denzille Lane.
With the exception of The Open University and the license agreement to Meteor, both of which expire in 2015, all remaining tenancies are in place on long term upward only lease agreements with no break options.
According to Savills, this provides an ideal scenario for an incoming purchaser to collect a guaranteed rent roll for the foreseeable future. There is also potential to actively asset manage vacant space exceeding 2,200 sq.ft which may become available to let in the short term or to renegotiate lease terms with The Open University in March 2015 when their current lease expires.
Brendan Delaney of Savills Investment who is handling the sale on behalf of KPMG said, “Pricing at €12.25 Million would reflect a net initial yield in excess of 7% and a price per sq.ft. of €552. At this price level the investment looks very attractive to savvy investors who are anticipating a marked recovery in the Dublin office sector over the next three years.
Given the high profile location, security of long term income from blue chip tenants and state/semi-state bodies in conjunction with continued investor appetite for centrally located office buildings, we anticipate a strong level of interest in the property”.