Savills has been appointed to sell the Blackrock Business Park Portfolio, which comprises three modern office buildings (Blocks 3, 4 and 5) with exciting asset management and reversionary potential.

Situated in Blackrock, which holds a reputation as being one of Dublin’s prime suburban office locations, and is home to numerous major national and international occupiers such as Zurich, Allianz and Permanent.

The Business Park benefits from excellent transportation routes including the Quality Bus Corridor (QBC) and DART services, where the Blackrock DART station is located within minutes to the north west of the park. The QBC provides access to the city centre in 12 minutes and the N11 provides vehicular access to both the city centre and the M50.

The immediate area is further benefiting from a number of improvements, including the redevelopment of both the Frascati and Blackrock Shopping Centres and the development of approximately 87,000 sq ft of Grade A office space by Friends First, which has been pre-let to Zurich.

Blocks 3, 4 and 5 were developed in 2007, being the latest additions to the park. They comprise approximately 50,500 sq ft GIA (38,100 sq ft NIA) of high specification office accommodation with superb layout flexibility and benefit from 96 car parking spaces.

Block 5 is a striking standalone property providing bespoke medical and office accommodation. Blocks 3 and 4 are interconnected, offering impressive office accommodation which is accessed via a shared reception. Each of the blocks are finished to a high standard to include a mix of natural stone, aluminium cladding and glazing on their external elevations.

The buildings are fully-let to a total of seven tenants and the portfolio offers diversified income across the financial, IT, helicopter fleet management and healthcare sectors.

With a total passing rent of €1.12m and a WAULT of 4.5 years to break and 8.5 years to expiry, at a guide price of €17.0m, this offers investors a net initial yield of 6.1%.

The portfolio also benefits from excellent tenant covenants to include Lobo Leasing, HRBR, Fincad and Kobo Software. Hair Restoration Limited who occupy Block 5 accounts for 31% of overall portfolio passing rent and has a term certain of 4.5 years to break and 9.5 years to expiry. The most recent letting in the portfolio was to Kobo Software, an IT company and subsidiary of Kobo Rakuten, agreeing a deal at €30 per sq ft NIA on a 10-year lease. With average passing rents of approximately €22.68 per sq. ft. NIA on Blocks 3 & 4, the opportunity offers very attractive reversionary potential for upcoming rent reviews and lease expiries.

Full planning permission was granted in 2017 for an additional penthouse level to Block 4 of 4,596 sq ft NIA, where building services are already in place. This offers immediate value add potential through asset management and further development.

Kevin McMahon of Savills is handling the sale and commented that “The Blackrock Business Park Portfolio will offer investors genuine asset management opportunities and the ability to capitalise on the continued rental growth in the Suburbs to achieve attractive reversionary returns at a significant spread above prime City Centre yields.”