21 June 2013
DTZ Sherry FitzGerald and DTZ McCombe Pierce are offering three office sale and leaseback opportunities, situated in the heart of Dublin city centre, Belfast city centre and affluent South Belfast.
DTZ Sherry FitzGerald and DTZ McCombe Pierce are offering three office sale and leaseback opportunities, situated in the heart of Dublin city centre, Belfast city centre and affluent South Belfast. All three buildings offer opportunities to acquire prestigious commercial investments.
The buildings will be fully leased back to The Royal Bank of Scotland Plc (‘RBS’), a grade A covenant with a D&B Rating of 5A1 and a net worth of £49 billion.
33 College Green, Dublin benefits from a high profile location on the corner of College Green and Church Lane with excellent dual aspect frontage leading onto College Green at the front and Suffolk Street to the rear. The property will be fully let under a new 10 year FRI lease at an annual rent of €840,000 per annum. The property is currently fully occupied by Ulster Bank Ireland (Limited); the ground floor provides the bank’s main city centre branch south of the river.
College Green is a landmark period building dating back to the 1890's with immediate neighbours including Trinity College and Bank of Ireland. The impressive property provides retail and office accommodation over four and five storeys and extends to approx. 4,267.80 sq m (45,939 sq ft). The bank premises are accessed via an impressive double height ornate gated entrance. The building was extended in the 1970’s to provide purpose built office accommodation. The location has potential for a wide range of uses including a retail fashion destination evident by the recent arrival of the adjoining Abercrombie & Fitch and Dubarry flagship stores.
The purchaser of 33 College Green will be eligible for a Capital Gains Tax (CGT) exemption if the property is acquired before the end of 2013 and is held for seven years. Sales agents DTZ Sherry FitzGerald are seeking offers in excess of €10.75 million, which equates to a net initial yield of approximately 7.48% (assuming purchaser’s costs of 4.46%).
11-16 Donegall Square East, Belfast occupies a prime location within the city centre; adjacent to Belfast City Hall in an area which is home to numerous financial institutions and corporations including Danske Bank, Bank of Ireland, Barclays, Aviva & Davys. The property will be fully let to RBS under a new 15 year FRI lease at an annual rent of £1,489,000 per annum.
This modern building constructed in the late 1990s extends over ground and six upper floors (plus basement parking), providing approx. 10,473 sq m (112,730 sq ft) of accommodation which is arranged to provide the main retail banking branch for Ulster Bank in the city centre and corporate Headquarters for Ulster Bank in Northern Ireland. The entire building is fully occupied by Ulster Bank Ireland (Limited). The upper floors are accessed by an impressive double height foyer constructed within the ornate portico entrance, formerly part of the Methodist Church which once stood on the site. This office accommodation is finished to a Grade A specification with large open plan floor plates situated around a central atrium which provides excellent natural light.
Sales agents DTZ McCombe Pierce are seeking offers in excess of £19.40 million, which equates to a net initial yield of 7.25% (assuming purchaser’s costs of 5.80%).
Danesfort on the Stranmillis Road, Belfast occupies arguably one of the premier addresses in affluent south Belfast with nearby occupiers including Queens University, The American Consulate, The Ulster Independent Clinic, Stranmillis College and Inchmarlo Prep School. This suburban location, characterised by its tree lined avenues and high value residential properties, is home to Ulster Bank’s main administrative support centre. The property will be fully let to RBS under a new 10 year FRI lease at an annual rent of £783,000 per annum. Formerly part of the Danesfort House Estate the building was constructed in the 1950s and occupied by Northern Ireland Electricity as their Headquarters, who still sublet part, with the remainder occupied by Ulster Bank Ireland (Limited). The property has been significantly extended and modernised in the intervening period and today provides approx. 7327.50 sq m (78,873 sq ft) of office accommodation arranged over four floors with an adjoining multi-storey car park. The buildings configuration would allow for multi-tenanted occupation and would suit a wide variety of uses in the future, subject to the necessary consents.
Sales agents DTZ McCombe Pierce are seeking offers in excess of £8.0 million, which equates to a net initial yield of 9.25% (assuming purchaser’s costs of 5.80%). The market is witnessing a flight to quality by investors who are looking for opportunities to acquire assets with secure income underpinned by prime real estate. RBS are a highly desirable covenant and their commitment to these buildings adds to the strength of the properties as investments.