Carrick-on-Shannon office sells for €6.2m – 11% above guide price – Independent, 29 January 2017

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A landmark office building in the town of Carrick-on-Shannon, Co Leitrim, has been sold for over €6.2m – a premium of more than 11pc on the €5.47m which had been guided by the property’s selling agents, TWM.

Purpose-built for its tenant, the Department of Social Protection, in 2006, Riverview House is a standalone office building with accommodation extending to approximately 40,000 sq ft.

The property remains fully-let to the Department on an FRI (full repairing and insuring) lease, with an annual rent of €600,000. The lease expires in 2026 with no break options.

Michele Jackson of TWM said that interest in the property had come predominantly from private investors and from funds seeking high-yielding secure income as part of an overall portfolio.

While TWM had been seeking in excess of €5.47m for Riverview House, it understood the selling agent secured in excess of €6.2m.

The price reflects an attractive net initial yield of just over 9pc (assuming standard purchaser costs of 4.46pc).

The buyer of the property is understood to be a private investor.

Riverview House is a three-storey, over-basement building with flexible floor plates which are fitted out to the highest standard.

The property has great profile, according to the agents, and is very accessible from the N4 road and the main Dublin-to-Mayo Road. It is also located just 600m from the main street in Carrick-on-Shannon. The town has recently seen a significant investment in its office sector, with the Digital Office Centre Group acquiring 120,000sq ft of space.

Riverview House is a grade-A office building with a central core, including two nine-person lifts servicing all floors. The first and second floors both host open-plan and cellular office accommodation. The ground floor, which hosts a canteen for staff and the tenant, has recently invested in the building to provide the Department of Social Protection’s Intreo service, which is accessible to the public.