A Smurfit-occupied industrial investment in Ballymount has been sold for €6.75 million through Knight Frank, which 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 €6.25 million guide price when the buildings came on the market in April.
The main attraction for investors was the secure income stream for 14¼ 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 59,500sq 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 27,000sq 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.
These properties are on Lower Ballymount Road, one of Dublin’s prime industrial areas, about 8km from the city centre. The area is home to a number of other Smurfit businesses, including the Educational Company of Ireland, Smurfit Kappa and Smurfit Recycling.