Smurfit-occupied investment with upward rent reviews sells for €6.75m

By Maurice Garvey

A SMURFIT-occupied industrial investment on the Ballymount Road has been sold for €6.75 million through agents Knight Frank.

The sale reflects an initial yield of 8.77 per cent – which could rise to more than 10 per cent when the property is fully occupied. 

The selling price is €500,000 more than the €6.25m guide price when the buildings came on the market in April.

The main attraction for investors was the secure income stream for more than 14 years from Smurfit Paper Sacks Ltd, which occupies one of the two industrial buildings on the overall site of 3.4 acres which has long-term redevelopment potential.

Smurfit occupies a 59,500 sq ft unit under a 25-year lease from August 2005 which is subject to upwards-only rent reviews, producing rent of €618,681 per annum.

The lease is guaranteed by Smurfit Packaging Corporation Limited.

The smaller unit with 27,000 sq ft should produce an additional rent of €94,500 per annum.

Both units were developed in the 1970s with concrete portal frames, mineral fibre roofs and roller shutter doors. The larger unit has been extended with an additional modern bay added.