Dublin industrial investment at €5.5m offers buyer 6.1% yield
Agent Harvey has been instructed to find a buyer for a warehouse investment at Kylemore Industrial Estate in Dublin 10. For sale at a guide price of €5.5 million, Block 3 comprises two semidetached warehouse and office buildings, along with two annexes, and extends to a gross external area of 4,726sq m (50,866 sq ft).The two warehouse buildings which make up approximately 98 per cent of the property, are occupied under two 15-year leases by Wholefoods Wholesale Limited (not affected by the sale). Taken together with its two annexes, the property is generating a total rent of €368,067 a year, which is highly reversionary. Wholefoods Wholesale Limited’s occupancy expires at the end of August 2027, and deeds of renunciation have been signed, meaning that no rights of renewal exist.The property is zoned ‘Z6 Employment/Enterprise’ under the Dublin city Development Plan 2022-2028 and is designated ‘Residential Led’ under the City Edge Project, a joint urban regeneration initiative by South Dublin County Council and Dublin City Council.READ MOREUK developer completes €60m purchase of Dublin logistics portfolio Avison Young promotes five executives to key positionsDundalk’s Marshes Shopping Centre adds fashion retailer Next to line-upHertz inks deal with Ryanair for new Dublin office headquarters Should a sale proceed at the guide price of €5.5 million, the new owner would be in line for a net initial yield of 6.1 per cent and a capital value of €108 per sq ft, which is significantly below replacement cost. Philip Harvey of Harvey says: “This property will appeal to both investors and owner-occupiers. For a value-add investor, the reversionary potential of the rent is significant, whether that be via a regear of the existing leases or new letting/s to other tenants. The offering will also appeal to owner-occupiers, given the lack of buildings available for sale on a vacant possession basis.”
