Dublin office investment will test levels of investor demand

Savills to market Parkgate Business Centre for €7.05m

Article posted: 20 Apr 2011

A substantial modern office investment which is occupied by the Health Service Executive will test the levels of demand from investors when it comes to the market through Savills with a guide price of €7.05m. 

A purchase at this level would provide an attractive net return to investors of approximately 9.4% after costs.

The property is being offered for sale on the instructions of KPMG receiver Kieran Wallace and is situated within Parkgate Business Centre. Parkgate Business Centre comprises four modern office buildings located next to the recently completed Criminal Courts Complex.

Other occupiers within Parkgate Business Centre include the Railway Procurement Agency which occupies two buildings totalling approximately 43,000 sq ft of office space at the Dublin scheme and Royal Bank of Scotland.

Block D is a modern office building, constructed in 1996 and extending to approx 19,600 sq ft over 4 floors. It is fully let to the Health Service Executive (HSE) on a 25-year lease from December 2001. The current rent is €715,000 per annum.

Michael Clarke of Savills is handling the sale and commented that; “This presents an opportunity for investors to achieve very attractive cash on cash returns with income secured by the HSE for the next 6.7 years”.

He added that: “The completion of the 247,000 sq ft Criminal Courts Complex has generated demand from members of the legal profession seeking good quality office accommodation in the immediate vicinity which should assist in supporting occupational demand within Parkgate Business Centre going forward.”

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Posted by Sara