€75m majority stake in docklands office for sale

Demand for high-quality office accommodation in the sought-after Dublin Docklands shows little sign of abating as one of the final office buildings in the vicinity hits the market with a €75m price tag.

A 70.8% stake in the ‘Riverside 1’ office building beside The Ferryman pub on Sir John Rogerson’s Quay was yesterday brought to market by Savills. The building is let in its entirety to McCann FitzGerald, one of Ireland’s leading law firms, and currently accommodates 450 staff while Aviva is retaining its 29.2% stake in the development.

“An opportunity to acquire one of Dublin’s most recognised office buildings is extremely rare; therefore we expect demand from a wide variety of investor types either seeking to expand an already established property platform in Ireland or alternatively those seeking to enter the market for the first time,” the Savills agents handling the sale said yesterday.

The seven-floor grade A building was constructed by John Sisk and Son on behalf of the partners of McCann Fitzgerald and designed by Scott Tallon Walker Architects and construction was completed in 2006.

A private consortium of investors led by Derek Quinlan bought the development with the backing of Anglo Irish Bank which, with Irish Nationwide, became the Irish Bank Resolution Corporation and subsequently Harcourt Life.

The lease offers investors an unexpired term of over of 16.5 years with current rents of €485 per square metre.

The property has upward-only rent reviews on a five yearly basis, giving investors further security. Leases granted since 2010 are drawn on open market rent reviews.

The next rent review is in October 2016, offering investors an ideal opportunity to benefit from the rising rents of the Dublin office market.

According to Savills, the level of income security is unprecedented among recent office investment activity. The property is the latest in the area to hit the market in recent times.

Earlier this month, Nama and property company Kennedy Wilson announced they were joining forces to deliver a landmark €200m development on the quays. The joint venture will deliver more than 55,740sq m of office space at a prime location near Google’s headquarters and beside the IFSC.