- What Avestus and Ares have two office assets on the block for €85m
- Why Knight Frank appointed to sell 1 Kilmainham Square
- What next Lot sizes should bring a different mix of buyers to the table
Avestus Capital Partners and Ares Management have brought 1 Kilmainham Square to the market and now have Dublin office stock totalling €85m up for sale as they wind down some of their joint venture interests, React News can reveal.
Kilmainham Square hits the market
Knight Frank has been appointed to sell 1 Kilmainham Square for around €32m, representing a yield of close to 6%. Located on Inchicore Road in Kilmainham, Dublin 8, the office building is home to Heineken Ireland and Parexel, an international pharmaceutical company.
The building, along with 51-54 Pearse Street and Magennis Court, were spun out of The Liffey Portfolio which NAMA had on the market for €57.5m in 2015. It comprised four assets with 1 Kilmainham Square individually being marketed for €28.5m for the five-storey block totalling 74,000 sq ft. 51-54 Pearse Street and Magennis Court, which have recently been sold to IPUT for €30m, had a guide price of €13.5m collectively.
Kilmainham Square, which was once the Irish headquarters for Amazon, is located beside the Clarion Hotel and close to Heuston Railway Station. It is close to being fully occupied.
€53m wanted for Harcourt Centre asset
Concurrently, Avestus and joint venture partner, Ares Management, have instructed CBRE to seek offers of €53m for blocks 4 and 5 Harcourt Centre. The adjoining offices comprise 54,000 sq ft of office space with around 2,500 sq ft of retail.
Located in Dublin city centre, the buildings generate a rent roll of €3m and offer a yield profile close to 5.25%. The tenant line up includes IWG, National Transport Authority and Zara.
Will the sales bring a different mix of buyer to Dublin?
This year the Dublin investment market has been dominated by a plethora of big-ticket sales, which have attracted a relatively select group of buyers with the required firepower for low yielding assets. German investors, such as Union and Deka, along with the big Asian players like Mapletree have dominated proceedings at the top end of the market.
However, the lot-size of 1 Kilmainham, and to an extent Harcourt Centre, should generate interest from a more varied investor pot with property companies attracted by the relatively attractive yields on offer. The yield profile of 1 Kilmainham could put the assets on the radar of Middle Eastern buyers which tend to like a rental income stream offering 6%-plus returns, or could UK-based property companies look to enter the fray?
Avestus and Ares exiting existing stock and redeploying capital
Last month, React News revealed that Avestus and Ares had disposed of the other assets they had picked from The Liffey portfolio – 51-54 Pearse Street and Magennis Court – to IPUT for around the €30m mark.
While the duo exits office assets they acquired in a distressed market, particularly city centre stock, capital has been redeployed elsewhere. The more recent acquisitions have tended to be mixed-use like Wolfe Tone Lofts; an out of town office, Block P2 in Eastpoint Business Park; and a 575-unit BTR development in Sandyford.
Knight Frank is representing Avestus at 1 Kilhmainham; while CBRE is instructed on blocks 4 and 5 Harcourt Centre.
All parties declined to comment
