Butterly Business Park – a mixed use commercial investment portfolio with development potential in Artane, Dublin 5 – is for sale by private treaty at a guide price of €7 million.
Property consultants Savills are handling the sale.
The development is producing a total gross rent of approx. €930,000 per annum and is anchored by Lidl who are paying an annual rent of €330,000 with just under 10 years until the next break option in 2023. The development also includes a petrol filling station trading as Maxol which produces a rent of €125,000 with a term certain of just over 11 years.
The income generated from retail tenants accounts for 75% of the total income whilst the income from industrial and office tenants is 14% and 9% respectively. Rental income from a telecommunications mast makes up the balance of the income stream. Other tenants at Butterly Business Park include Dolmen Insurance and Bambury Bookmakers amongst others.
The guide price of €7 million equates to a gross yield of almost 13.3% representing a strong return for a mixed use portfolio in a prime Dublin location. There is significant potential to increase the current rent roll as there is vacant industrial and office space available within the park including a 2,787 sq.m. (30,000 sq.ft.) industrial facility which was previously in use as a market. The total floor space is approx. 14,250 sq.m. (153,408 sq.ft.) and the total site area is approx. 3 hectares (8 acres).
Butterly Business Park is located on Beaumont Road less than 500 metres from its junction with the Malahide Road and just 5 km north of Dublin City Centre. The Park is opposite Artane Shopping Centre which is anchored by Tesco and includes tenants such as McDonalds, Lifestyle Sports and Unicare Pharmacy amongst others. The location enjoys easy access to the M1 motorway (J2) and to the M50/M1 motorway junction. Beaumont Hospital and Northside Shopping Centre are within 1 km of Butterly Business Park and there is a large residential catchment in the immediate vicinity.
The development has the benefit of a 10 year planning permission from July 2012 for a mixed use development comprising approx. 23,705 sq.m. of non-residential floor space and a total of 178 dwelling units. The entire is zoned under objective Z6 in the Dublin City Development Plan 2011-2017 “To provide for the creation and protection of enterprise and facilitate opportunities for employment creation.”
Gavin Butler of Savills said, “The sale represents a rare opportunity to acquire a mixed use commercial property portfolio with significant potential to increase the current rental income. The development will be of interest to developers/investors looking for an investment opportunity with extensive asset management and redevelopment potential.”