A private Irish investor is in line for a net initial yield of 8.75 per cent following their purchase for just over €3.3 million of a multi-let office investment in Dublin’s traditional central business district.
Located within a short walk of the offices of the Department of Finance, Government Buildings and the five-star Merrion Hotel, 142-143 Baggot Street was offered for sale by QRE Real Estate Advisers last September on the instruction of receivers Deloitte at a guide price of €3.5 million.
Although the property, which comprises three floors of office space above ground-floor level, had been generating about €202,000 in annual rental income from several occupiers when it first came for sale, QRE secured additional tenants for the vacant first and third floors alongside the regearing of the existing second-floor lease. The building’s annual rental income increased to €320,000 as a result of this strategy.
Commenting on the sale, Brian Kelly of QRE Real Estate Advisers said: “This transaction demonstrates how active asset management can unlock value. By addressing vacancy, strengthening lease terms and stabilising income over 12 months, we were able to reposition the building and deliver a successful sale within months of launching the asset to the market.
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“The transaction highlights the continued investor appetite for income-producing office assets in established Dublin locations, particularly where asset-management risk has been reduced and income security enhanced.”