TWO office buildings on an 0.8-acre site at Ballybrit Business Park on the outskirts of Galway city have come to the market with a guide price of more than €1.475m.
Sarah Winters of agents TWM, who is handling the sale, says the price reflects a net initial yield of 2.83pc.
“However, this could increase to more than 10pc once fully let and assuming standard purchaser’s costs of 9.96pc,” she adds.
The investment comprises two detached office buildings, extending to a total of 1,847 sq m. Of this, Unit 2 Ballybrit Business Park accounts for 1,207 sq m (12,992 sq ft) of gross internal floor area over two floors. Unit 2A extends to 640 sq m (6,889 sq ft) over three floors.
BT Communications Ireland Ltd occupies 268.62 sq m (2,891 sq ft) under a 25-year lease on part of the first floor of Unit 2. It pays an annual rent of €45,900.
The remainder of the buildings are vacant, but Ms Winters says that rents of between €12.50 and €15 per sq ft are achievable in Unit 2, while those in Unit 2a could be in the region of €10 to €12 per sq ft.
Facilities include canteen, kitchenette and toilets for staff, with ample parking on site for 55 cars. The buildings both incorporate predominantly open-plan office accommodation.
Galway has very low office vacancy rates and a recent Cushman & Wakefield survey showed 9,400 sq m of space taken in the first half of this year.
Ms Winters says the sale presents an attractive opportunity for both investors and owner occupiers. She expects a good level of interest, given the attractive lot size.
“With an overall capital value of approximately €798 per square metre (€74 per sq ft), the price is significantly below reinstatement costs, which together with the asset management potential presents an attractive opportunity to prospective purchasers,” she adds.
Ballybrit Business Park is a well-established commercial location with a mix of office, retail, industrial and logistical uses in Galway city’s northern suburbs.
It is located close to the N6/M6 Dublin to Galway motorway and the associated road networks.
Ms Winters says it is a highly accessible area, with a strong mix of national, multinational and local operators, including Boston Scientific, Hewlett Packard, SGS Ireland, NDLS, TE Connectivity and Schneider Electric IT Logistics.
BT Communications Ireland provides managed, networked communications and IT services across 180 countries.
The company, which employs about 600 people operating in five cities in Ireland, recently refurbished its Ballybrit accommodation.
“This underpins their commitment to the location and property,” she adds.