Just over 10 years after its precursor Standard Life acquired numbers 3 and 5 Custom House Plaza in the IFSC, UK-headquartered investor Aberdeen is looking to dispose of both buildings.
The properties, which have seen substantial investment under Aberdeen’s ownership, are being offered to the market by agent TWM at a guide price of €24 million.
The figure offers a useful insight into the current market for office stock in the IFSC, when one considers that Standard Life paid the same amount for numbers 3 and 5 two years prior to its 2017 merger with Aberdeen.
News of the Custom House Plaza sale comes just over one week after La Touche House at nearby George’s Dock came to the market at a guide price of €25 million, or some 70 per cent less than the €84 million it achieved when it was sold in 2020 to Axa IM Real Assets and BCP Capital.
The figure offers a useful insight into the current market for office stock in the IFSC
Located next to Connolly Station, the wider Custom House Plaza development comprises six office buildings, including the two properties now being brought to the market. Numbers 3 and 5 Custom House Plaza extend to a total net internal area of 5,631sq m (60,606sq ft) and have 71 secure basement car parking spaces.
Citco Fund Services accounts for 50 per cent of the total annual rental income of €2,656,974. Citco occupies the largest floor area, has been in Custom House Plaza since 1998, and recently renewed its leases.
Other tenants include FlexiFi Europe Services, Companjon, Maxol and Device Atlas. The combined weighted average unexpired lease term is currently 6.49 years to expiry and 3.89 years to break.
Aberdeen has undertaken significant investment in the buildings’ office accommodation and has improved the Ber rating which ranges from E1 to B1. It has also recently completed a full CAT A&B fit-out of level five in 3 Custom House Plaza which extends to 4,439 sq ft and benefits from both office and medical planning consent. Level 3, which is currently leased to an office occupier, also has the benefit of dual planning consent for office or medical use.
The building’s potential value as a medical facility is evidenced by the HSE’s purchase last year of the neighbouring 2 Custom House Plaza for use as the Mater Hospital’s new ophthalmology unit.
Michele Jackson is offering numbers 3 and 5 Custom House Plaza for sale in one lot or individually, with a collective guide price of €24 million equating to a net initial yield of 10.07 per cent.
