M7 sells Dublin office complex to BCP
M7 Real Estate has sold an office complex on Fumbally Lane, Dublin, to BCP Fund Management for €33.5m (£30.4m).
The amount represents a capital value per square foot of €403 and a reversionary yield of 8.5%, based on current ERV.
The asset includes a five-storey building with 55 underground car parking spaces. There are a further three period properties, including part of a deactivated distillery, which have recently been converted into high-quality office space.
M7 Real Estate has sold an office complex on Fumbally Lane, Dublin, to BCP Fund Management for €33.5m (£30.4m).
The amount represents a capital value per square foot of €403 and a reversionary yield of 8.5%, based on current ERV.
The asset includes a five-storey building with 55 underground car parking spaces. There are a further three period properties, including part of a deactivated distillery, which have recently been converted into high-quality office space.
The site also includes four residential units measuring 4,000 sq ft and a 0.4-acre development site.
M7 acquired the asset in December 2016 with a vacancy rate of 17%, which is now around 2%.
After an intensive asset management programme, M7 refurbished the common areas in the scheme and undertook 19 new leases, totalling 33,191 sq ft, within its 20 months of ownership.
It also generated an additional annual contracted rent of €1.14m. M7 said that this will result in an increase in rental income of 51%, including lettings that are in discussions with solicitors.
John Murnaghan, head of real estate in the UK and Ireland at M7, said: “The sale of our Fumbally Lane asset ahead of the anticipated exit timeframe in our business plan demonstrates the strong occupational demand in the Dublin office market plus the success of our leasing strategy, which has focused on providing a quality product with an engaged occupier approach. We have no doubt that the asset will go from strength to strength under BCP’s ownership.”
CBRE acted for M7 Real Estate and Savills acted for BCP.
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