A majority share (70.8%) in one of the premier Grade A office blocks to be constructed in Dublin’s South Docklands has been brought to the market by Savills with a guide price of €75m.

‘Riverside 1’ is largely considered Dublin’s most striking modern office building, situated on Sir John Rogerson’s Quay directly opposite the Dublin Convention Centre. This sale will represent one of the last remaining office investments in Dublin South Docklands to trade in this cycle of the Irish property market recovery.

The building is let in its entirety to McCann FitzGerald, one of Ireland’s leading law firms, and is currently accommodating in excess of 450 staff. The practice comprises of 67 partners and more than 350 lawyers and professional staff. McCann FitzGerald was established in 1965, bringing together smaller predecessor firms dating back as far as the 1820s. The firm broadly practices on four main areas namely Corporate, Banking & Financial Services, Dispute Resolution and Litigation, and Real Estate and Construction.

In the immediate vicinity of Riverside 1 is an urban quarter comprising modern office blocks, high quality residential developments, retail units, hotels, bars and restaurants. In addition, the area is now one of the city’s primary cultural and entertainment locations with the Bord Gais Energy Theatre, Aviva Stadium and 3Arena all close by.

The South Docks also has access to a variety of transportation links including the DART (Dublin Area Rapid Transport) commuter rail service, numerous bus services and the LUAS red line tram situated in the Irish Financial Services Centre (IFSC). The surrounding area has excellent road infrastructure with the Samuel Beckett Bridge providing speedy access to the North Docks, IFSC and further north to Dublin Airport which is 20 minutes away.

The overall investment (100%) is currently generating a rent of approximately €5.15 million per annum. This passing rent can be analysed as €45 per sq ft which, given the recent occupational improvements, is immediately reversionary. The lease offers investors an unexpired term of in excess of 16.5 years. The level of income security is unprecedented amongst recent office investment activity.

The asset benefits from upward-only rent reviews on a 5 yearly basis, thus giving investors further security of income. 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 office market.

The building was constructed by John Sisk and Son on behalf of the partners of McCann Fitzgerald. It was designed by Scott Tallon Walker Architects and construction was completed in 2006. This true corporate headquarters extends to approximately 110,000 sq ft of Grade A office accommodation set over seven floors and boasts some of Dublin’s most impressive views. There are also 58 basement car parking spaces.

The sale is being handled by Fergus O’Farrell and Dessie Kilkenny of Savills Ireland who commented:

“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 unrivalled lease term, upward only reviews, and a strong rental market which investors in Riverside 1 can benefit from with the 2016 rent review, offers investors an opportunity for a core office investment not seen in this cycle”.