Dublin office block comes on the market for €25.5m
The new HQ of international technology company, New Relic has been brought to the market by Savills at a guide price in excess of €25.5 million – reflecting a net initial yield of 5.26% and a capital value in the region of €825 per sq. ft.
The property at 31-36 Golden Lane, which is currently being significantly refurbished internally to provide for a modern office building, is expected to be of interest to investor groups seeking secure long income investments.
New Relic International has agreed a 20-year lease on the entire at a rent of €1.455m per annum with a break option at the end of year 10 subject to a 3 month rental penalty. The lease commencement will coincide with the practical completion date of December 2017. The lease will be guaranteed by New Relic Inc., a NASDAQ listed stock exchange company, and will also incorporate 5 yearly open market rent reviews with a 10% cap and collar provision at the first review.
New Relic is a leading global digital cloud-based analytics, intelligence and information technology company founded in San Francisco in 2008. They provide full-stack visibility and analytics software enabling businesses to monitor and analyse the performance of their web and mobile applications and information technology infrastructure. The Golden Lane office building will serve as New Relics European, Middle Eastern and African (EMEA) headquarters. New Relic currently have over 1,000 employees and also have other offices in Portland, Barcelona, London and Zurich.
This unique building which was originally designed by Scott Tallon Walker Architects, comprises a three storey modern office headquarters with a floor area of approximately 2,877 sq m (30,967 sq ft) NIA and bike storage areas for 40 bicycles. The building is situated on a site of approx. 0.14 hectares (0.34 acre). The building benefits from excellent natural light due to the floor plate design and the large atrium which creates an attractive focal point. Externally, the building has a distinct frontage with a striking curved frame, red brick façade and green and white cladding.
The property also lends itself to exciting potential future asset management opportunities with the expansion of the original building by way of additional floors to the top of the building. The adjoining Radisson Blu Hotel has recently obtained Phase 2 planning permission for a total of 8 storeys indicating the potential to increase the subject property from three to five storeys based on the parapet heights (S.P.P).
31-36 Golden Lane is strategically situated within Dublin’s Central Business District and only minutes from the environs of St. Stephen’s Green and the facilities of Grafton Street. This excellent commercial destination is home to many of Ireland’s major international businesses, banks and Government offices. Notable occupiers in the surrounding area include The Radisson Blu Hotel, Dunnes Stores HQ, The National Archives of Ireland, Dublin Business School and DIT Aungier Street.
The building occupies a high profile corner location at the junction of Golden Lane and Great Ship Street close to Dublin’s Creative Quarter, a vibrant hub surrounding the hugely popular George’s Street area. A broad selection of restaurants, cafes and shops are all readily available in the immediate vicinity, with Dublin’s prime retail high street, Grafton Street, within a six minute walk.
The location boasts unrivalled access and transport facilities. The LUAS Green Line linking St. Stephen’s Green to the Dublin South suburbs and the new LUAS Cross City Line are both located 450 metres from the property. The area is well served by Dublin Bus routes in addition to having a number of multi-storey car parking facilities. There is also a Dublin Bike station opposite the property on Golden Lane with other stations close by.
Kevin McMahon of Savills said: “The quality of the New Relic covenant together with 10 years income certainty offers potential investors a secure office investment within a vibrant hub in Dublin’s CBD only minutes’ walk from St. Stephen’s Green.”
