Published Date: 20/03/2024
Irish Times, March 20 . 2024.
14-16 Parkgate Street is occupied by long standing tenant on 25-year lease.
Ronald Quinlan
Private investors and family offices looking for a healthy return on their investment underpinned by a strong tenant covenant will be interested in the sale of 14-16 Parkgate street in Dublin 8.
Located next to the Luas red line on the approach from Heuston station to Dublin city centre, the property is being offered for sale fully let by agent Finnegan Menton at a guide price of €7.5 million.
Situated next door to the landmark Aishling Hotel. 14-16 Parkgate street briefly comprises of four storey office building of 16,253sq ft (1,510sq m): Extended in 2017 the property is let in its entirety to First Ireland Risk Management, which is 100 per cent owned by the Arthur J Gallagher Holdings Ireland. The building is occupied by a 25-year full repairing and insuring lease from July 2022. This agreement is a renewal of previous leases with the tenant in occupation for almost 20 years. Should a sale proceed at the guide price, the incoming purchaser would stand to secure a net initial yield of about 7.2 per cent after a standard purchasers cost 9.96 percent.
The current passing rent is €599,000 per year and the lease is subject to five yearly mutual-break options. First Ireland Risk Management was acquired by global insurer, the Arthur J Gallagher Group, in January 2023. Founded in 1982. First Risk Ireland Management has a client base of more than 35,000 customers. Some 24,500 of its customers are commercial while the remaining 10,500 are personal lines.
The Arthur J Gallagher Group was founded by Arthur Gallagher in Chicago in 1927. The group has grown since then to become one the leading insurance brokerage, Risk management and human capital consultant companies in the world. The group employs more than 52,000 people worldwide and provides services in more than 130 countries. The company is listed on the S&P 500 stock market. Parkgate street and the surrounding area is undergoing a significant regeneration with the nearby Hickeys site slated for a significant mixed-use development by Joe O’ Reilly’s Chartered Land while Guiness owner Diageo is planning to develop 12.6 acres of (5.09 hectares) of its St James Gate brewery site in partnership with developer Sean Mulryan’s Ballymore.
14-16 Parkgate Street sits within 250m of the Phoenix Park, Europe’s largest enclosed city park, extending to 707 hectares (1,747 acres) and is readily accessible by public transport.
Further information is available from Mark McCormack or Nicholas Corson at Finnegan Menton.