Irish family office Ardvest has paid a total of €41.5 million for office investments in Dublin city centre and in Dublin 15.
In the first instance, it is understood to have paid slightly more than the €24 million agent TWM had been guiding for numbers 3 and 5 Custom House Plaza in the IFSC.
A part of the wider Custom House Plaza office scheme, numbers 3 and 5 extend to a total net internal area of 60,606sq ft (5,631sq m) and have 71 secure basement car-parking spaces.
The investment is generating €2,656,974 in annual rental income, with 50 per cent of the rent roll derived from Citco Fund Services. Citco occupies the largest floor area and has been in Custom House Plaza since 1998. The company recently renewed its leases.
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Other tenants include FlexiFi Europe Services, Companjon, Maxol and Device Atlas. The combined weighted average unexpired lease term is just over 6 years to expiry and 3.4 years to break.
The investment’s outgoing owner, UK-headquartered investor Aberdeen, undertook significant investment in the buildings’ office accommodation and improved the Ber rating which ranges from E1 to B1. It also recently completed a full Cat A&B fit-out of level five in 3 Custom House Plaza, which extends to 4,439sq ft and benefits from both office and medical planning consent. Level 3, which is leased to an office occupier, also has the benefit of dual planning consent for office or medical use.
For its second acquisition, Ardvest is understood to have paid about €17.5 million for Blocks A and D at Ashtown Gate in Dublin 15. The price paid represents a 13 per cent discount on the €20 million agent Savills had been guiding when it offered the investment to the market in May of this year.
Located next to Phoenix Park, the investment comprises two office blocks extending to 70,532sq ft and 23,150sq ft respectively, along with 226 car-parking spaces.
The property is generating a total of €1.82 million in annual rental income, with 90.5 per cent of this State-backed.
The larger of the two blocks (Block D) accounts for 72 per cent of the rental income and is let to the Office of Public Works (OPW), with just under 12 years remaining on the lease and about five years to the break option.
The smaller of the two buildings is let to the Health Service Executive (HSE) and to electricity provider Energia.
