A record industrial yield for the west Dublin property market has been recorded with the sale for €9.12m (£6.2m) of the Lafarge premises at Fonthill Business Park to a private investor.
French multinational company Lafarge, is currently paying a rent of €506,500 (£306,635) per annum for the premises on a 20-year full repairing and insuring lease from 1st August 2004, representing a net initial yield of 4.98%.
The unit extends to 4,240 sq m (45,638 sq ft) inclusive of 740 sq m (7,965 sq ft) offices.
A key factor in generating such a low yield may be the investor’s expectation that the Fonthill Business Park will see capital appreciation which is higher than the average Dublin industrial unit.
The Lafarge property backs onto a German retail discount store and the nearby Liffey valley site has been earmarked for a new Dublin town centre style development.
Patrick Curran, Atisreal Harrington Bannon, who acted for the vendors said:
“Fonthill Business Park together with Citywest Business Campus are probably the two most prime business parks in the country and the yield reflects both the quality of the business park (which has attracted major international corporations including Whirlpool, Dunlop, Philips, Avery Dennison, Glanbia and Musgraves) and the demand for good quality investment product let to excellent covenants under long lease.”
References: EGi News 02/03/06
