IFSC office block offers investors ‘significant discount’ at €17m guide

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IFSC office block offers investors ‘significant discount’ at €17m guide
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Number 1 Custom House Plaza is 60% occupied and generating €558,000 in net income per year

1 Custom House Plaza is near both Connolly Station and Dublin Arch, a major mixed-use development being pursued by developer Sean Mulryan's BallymoreAgent Cushman & Wakefield is guiding a price of €17 million for number 1, Custom House Plaza, a high-profile office investment in the IFSC .

The property, adjacent to the rear entrance of Connolly train station and close to the site of Dublin Arch – the much-anticipated, major mixed-use development being pursued by developer Sean Mulryan’s Ballymore – is the most prominent of the six buildings within the wider Custom House Plaza scheme. Number 1 extends to 3,863.74sq m and is fitted out to a high specification.

The block, which has multiple tenants, is 60 per cent occupied and is generating a gross income of about €951,000 per annum from three tenancies. The net operating income, after allowing for current landlord void costs is about €558,000 per annum. The tenant line-up includes Zellis, a leading provider of payroll and HR solutions and Kaseya, an American IT and security management multinational. Combined they offer a weighted average unexpired lease term of about 4.

There is potential for the new owners to grow their income return through the letting of the remaining vacant space, which extends to 1,540.33sq m and includes 21 car parking spaces. Excluding car parking, the current passing office rents reflect an average rate of €371.35 per sq m , well below the neighbouring rental levels within the wider Custom Plaza scheme.

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