A high-profile office building on Aungier Street, let on a long lease to Dublin Business School (DBS), has been brought to the market by Savills at a guide price in excess of €15 million. A price at this level reflects a very attractive capital value of €532 per sq ft.
The property is centrally located in the heart of Dublins CBD, only minutes from the environs of St. Stephen’s Green and the facilities of Grafton Street and is securely let for a further 10.3 years, with upwards only rent reviews and no break options. DBS are currently paying a rent of €675,000 per annum, reflecting a low average rate of approx. €24 per sq ft. However, the upcoming December 2018 rent review, which can be based on educational or office use, provides investors with a genuine opportunity to enhance the income returns.
The entire is let to Accountancy and Business College (Ireland) Ltd., t/a Dublin Business School who were established in 1975, and is Ireland’s largest independent third level college, with over 9,000 students. The lease is guaranteed by Kaplan Inc., a leading international provider of educational and career services.
The building occupies a high-profile corner location at the junction of Aungier Street and Longford Street Lower in Dublin’s Creative Quarter, a vibrant hub surrounding the hugely popular George’s Street area. A broad selection of restaurants, cafes and shops are all readily available in the immediate vicinity, with Dublin’s prime retail high street, Grafton Street, within a three-minute walk.
This excellent commercial destination is home to many of Ireland’s major international businesses, banks and Government offices. Notable occupiers in the surrounding area including BDO, in the adjoining building, Beaux Lane House, The Royal College of Surgeons in Ireland, Dunnes Stores HQ, The National Archives of Ireland and DIT Aungier Street.
The location boasts unrivalled access and transport facilities. The LUAS Green Line linking St. Stephen’s Green to the South Dublin suburbs and the new LUAS Cross City Line are both located 400 metres from the property. The area is well served by Dublin Bus routes in addition to having a number of multi-storey car parking facilities and Dublin Bikes stations close by.
This modern four storey over basement building extends to 2,618 sq m (28,180 sq ft) and is situated on a virtual island site of approx. 0.21 acres, providing excellent longer-term redevelopment potential (SPP).
The property originally dates from the 1930s and has since been modified and updated and is currently in use as the Dublin Business School. The existing accommodation provides educational classrooms, lecture rooms, offices, a library and a canteen in addition to an impressive entrance foyer / reception area fronting onto Aungier Street.
Kevin McMahon of Savills says;
“We expect strong interest in this opportunity due to the long unexpired term and excellent income enhancement potential from the upcoming rent review, in addition to the longer-term redevelopment plans and the attractive price of €532 per sq ft for a prominent, centrally located Dublin city centre building.”