The sisters, Joan Ward, Sarah Tormey, Jenny Howes and Mary Mahony, all directors of Killeen Property, have made the investment more than a year after selling Mount Juliet hotel and golf resort in Co Kilkeny and the adjoining 840-acre Ballylinch stud farm for around €60 million. The stud was bought by the American billionaire John Malone who subsequently acquired Sir Anthony O’Reilly’s Castlemartin estate in Co Kildare.
Killeen Property will get a net return of 6.25 per cent on 2 Custom House Plaza, a prominent 18-year-old block owned by an investment syndicate assembled by Irish Life Assurance.
The five-storey block with a floor area of 2,727sq m (29,430sq ft) and 29 car parking spaces has experienced a changing of the guard in recent years with all the original tenants replaced and rents largely recast.
The rental income of €990,000 per annum reflects an average rate of just over €344 per sq m (€32 per sq ft), well below the top rents in the IFSC of close to €484 per sq m (€45 per sq ft).
The new owners will be able to pitch for significantly higher rents as well as boosting the income from the car park by an additional €40,000 by leasing 14 spaces which are currently unused.
The investment block is one of six interconnecting office buildings located around a central liner glass atrium.
Number 2 is located on the north side of Custom House Harbour, adjacent to the Luas, Dart and mainline railway services at Connolly Station and the bus services at Busaras.