The FINANCIAL — Joint agents JLL and Eastdil Secured are delighted to bring to market the prime office investment sale of the newly developed Five Hanover Quay with a guide price of €190 million.
Situated in the heart of the thriving docklands area, Five Hanover Quay has arguably the best address in Dublin City Centre and is expected to attract international investor demand. Five Hanover Quay was developed by Targeted Investment Opportunities ICAV (TIO) which was one of a series of their completed and current office developments all located in prime waterfront sites in Dublin city centre.
Designed by a team of award-winning architects, engineers and consultants, and built to LEED Gold V4 standards, the property offers almost 160,000 sq. ft. of newly developed state of the art office accommodation. The design by RKD Architects ensures maximisation of the south facing water frontage views from the building which also features a recessed penthouse with wrap round balconies overlooking stunning city views.
Five Hanover Quay is fully let providing an annual rent of over €8.75million per annum. Tenants include DocuSign who are taking the lower four floors extending to nearly 100,000 sq ft and Aptiv who occupy the top three floors at just over 60,000 sq. ft. 40 basement car spaces are also fully let to the two tenants and occupiers benefit from 230 bicycle parking spaces, and 15 showers and changing facilities.
The investment provides long term secure income with a weighted average unexpired lease term of 12 years and guarantors provided by both tenants. The low rents with an approximate average rent of €54 per sq ft across 7 floors also provides eversionary potential when compared to prime city rents which are reaching over €60psf.
DocuSign Inc is a San Francisco based company listed on the NASDAQ Exchange that pioneered the development of e-signature technology. DocuSign posted impressive Jan 2019 year-end figures of $701 million. Aptiv is a leading global automotive technology company listed on the NYSE. Five Hanover Quay is Aptiv global headquarters.
Five Hanover Quay is superbly located overlooking Grand Canal Square, with a number of high- quality hotels trading within a 5-minute walking distance, including the Marker Hotel, as well as a wide selection of boutique coffee shops, restaurants, convenience shops and a number of landscaped city parks in the immediate area. Five Hanover Quay benefits from excellent transport links, conveniently served by several bus routes, including the Aircoach. In addition to this, the property is just a 10-minute walk from the Pearse DART/Train station and to the Luas at the IFSC. It is approximately 20 minutes’ drive via the Port Tunnel from Dublin Airport, making it very accessible both nationally and internationally.
The Dublin office market continues to perform strongly and above long-term average levels. 2018 was a record year with take-up of 3.9 million sq. ft. and 2019 has started equally buoyant, with the strongest level of take-up ever recorded in the first quarter of the year.
“Demand is being driven by large existing multinational companies who are experiencing strong domestic Irish growth in response to solid performance in the Dublin market. Occupiers such as Facebook, Google, Salesforce, Hubspot and WeWork, acquired space in the last 12 months. These occupiers are looking for larger-sized space, with an increase in larger deals as a result.” – said John Moran, JLL Ireland CEO.
In terms of the Investment Market, 2018 proved to be another strong year in Ireland, with year-end volumes totalling €3.6 billion as part of almost 200 deals. Overseas investors, particularly those from South Korea and Europe, continue to dominate the Irish investment market with a broad range of institutional demand.
The Guide for Five Hanover Quay is €190 million providing a net initial yield of 4.25% assuming standard acquisition costs of 8.46%.