An affiliate of The InterTech Group, Inc. a U.S. company based in North Charleston, South Carolina advised by international real estate advisor Savills, has completed the acquisition of the SAP offices at 1012-1014 Citywest Business Campus, at a price of €14.15 million, reflecting a net initial yield of 11.1%.  This deal represents the largest office investment transaction outside of Dublin City Centre during the last 12 months.

Jacqueline Fitzpatrick, Associate Director at Savills, Dublin, says: “The acquisition of the SAP buildings is evidence that core international investors are increasingly turning their attention to Ireland and particularly Dublin for opportunities.  This provides The InterTech Group, Inc. with a very attractive yield from an extremely strong covenant in a modern building that risk adjusted would be difficult to find across the United States and Europe.”

Located close to the N7 dual carriageway and close to the Luas red line, these quality offices were constructed in 2000 and were extensively refurbished in 2010. The offices comprise 6,972 sq m (75,052 sq ft) of office space across two floors, as well as 280 car parking spaces.

The property is fully let to SAP producing an annual rent of €1,639,524.  The tenant is in occupation under three leases with approximately 13 years to expiry and a tenant break option in 8 years. The leases are full repairing and insuring and have 5 yearly upward only rent reviews. The tenant has a net worth of €2.8billion as at December 2011 and a turnover of €704million. SAP are an expanding workforce and have recently taken additional space at Waterside, Citywest, adjacent to 1012-1014 Citywest Business Campus.

Robert Johnston, Executive Vice President of The InterTech Group, Inc. stated: “We are thrilled to have closed on this excellent investment. We are very excited about investing in Ireland and look forward to building a large portfolio of high quality commercial and industrial real estate”.