Davy Real Estate Fund Seeks €26.5 Million for Prime Office Investment in Dublin

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Davy Real Estate,Office Investment,Dublin

A fund managed by Davy Real Estate is looking to sell a prime office investment on Lower Hatch Street in Dublin city centre for €26.5 million. The property, known as '20 on Hatch', is currently leased to Medtronic and MetLife. The sale price represents a 34% drop from its 2018 valuation.

A fund managed by Davy Real Estate is seeking €26.5 million for a prime office investment - 20 on Hatch - on Lower Hatch Street in Dublin city centre.

While the sale of “20 on Hatch” at that level would provide a purchaser with a net initial yield of 8.07 per cent according to selling agent Savills, the figure represents a 34 per cent drop in the €40 million valuation the Davy Irish Property Fund ascribed to the building in 2018. The fund paid €27.5 million to secure ownership of 20 on Hatch in 2014.

MetLife is the majority occupier at the property with five floors taken up by its operations. In 2018, the company extended its existing lease term for 10 years, at an agreed rent in excess of €50 per square foot. 20 on Hatch serves as Metlife’s operational office headquarters for western and central Europe. The company expanded its Irish presence further in 2017 when it opened a Global Technology Campus in Galway.

The weighted average unexpired lease term is approximately three years according to Savills. The building has a C3 Ber rating at present, and as such, would require investment to bring its sustainability credentials up to the standards typically found in the latest generation of office buildings.

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