Acquisition of IFSC block for just over €15m – Irish Times 27 January 2016

Four daughters of the late Tim Mahony, founding chairman of Toyota Ireland, have bought a high-profile office investment in Dublin’s IFSC for just over €15 million

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.

Rent roll

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 block is fully let to PTSB Finance, TD Global Finance, Calypso, Robert Walters and Squared Financial Services with a weighted average unexpired lease term of 5.19 years.

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.

Michelle Jackson of agents TWM advised the purchasers while Chris Belton of Lisney acted for the vendors.