The prospect of securing immediate, long-term income from a strong tenant line-up comprising the State and one of Ireland’s most successful grocery retailers should see significant interest from investors in the sale of 21-24 Capel Street in Dublin city centre.
Located at the corner of Capel Street and Abbey Street, the subject property briefly comprises a modern office building with a convenience store at ground-floor level. Extending to a total area of 36,288sq ft (3,371sq m), the building, which is best known as the headquarters of the Garda Ombudsman Commission, is being offered to the market by agent JLL at a guide price of €19.2 million.
The offices are leased in their entirety under a single, full repairing and insuring (FRI) lease to the Garda Ombudsman Commission, the independent statutory body responsible for the fair and impartial oversight of policing in Ireland. The commission agreed to lease the building prior to its completion in 2007 in order to have a self-contained, secure office with bespoke fit-out at ground-floor level.
The tenant did not exercise a termination option on the lease in 2017 which underpins its commitment to the space. Given that the public visit the premises, accessibility to public transport is key.
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A scheduled rent review was recently agreed at a net effective rent of €32.50 per sq ft with the next rent review due in April 2027.
In addition to the long-term certainty, the leases include upwards-only rent review clauses, providing further certainty of income for a prospective purchaser.
The ground-floor retail unit is leased to a subsidiary of the BWG group, the parent group for numerous retail brands including Spar, Eurospar, Londis and Mace. The lease is for a 25-year term, running to April 2031 at a passing rent of €125,000 per annum. The sale also includes 14 car parking spaces located in the building’s secure basement car park.
The investment offers the prospective purchaser long-term secure income with a term certain of about 8.8 years across the two leases with a total passing rent of €1,267,960 per annum.
Should a sale of the property proceed at the guide price of €19.2 million, the buyer would be in line for an initial yield of 6 per cent, reflecting the strength of the covenant, length of lease and upwards-only review clauses.
Numbers 21-24 Capel Street is well located within Dublin city centre and well connected by public transport thanks to its position next to the Luas red line, which links it to the city’s two main train stations at Hueston and Connolly. A number of Dublin Bus routes also serve the immediate area. In terms of local amenities, the subject property is just a short walk from the retail streets of Henry Street and Mary Street and within proximity to both Smithfield and the Four Courts.
