US bank buys Dublin offices (incl gratuitous gazumping)

There is more…

Assuming rents stay stable, that’s a reasonable enough yield.

50% drop in asking price and eventual 36% drop from original asking price to selling price. There’s a lesson there.

The buildings:

Hmmm.
I’m working from a 3 storey modern office that is going to be handed back to the landlord in July. The other half of the office building has been lying vacant since I moved in here a few months ago. I’ll be moving back to our company’s other office which is being refit to accomodate all our staff.
Just because those buildings are generating income now doesn’t mean they’ll be generating any income when the leasehold expires in coming months or years.

In the short term the winner bidder can congratulate themselves on their high yield but in a while it will be evident enough if they got a bargain or not.

Anyone want to hazard a guess what these would have been selling for back in 2006?

From June 2006.

independent.ie/business/iris … 95099.html

The commercial market is still seriously over-rented.

Edited to add.

independent.ie/business/comm … 36349.html

If thats what Dublin yields are achieving, anyone hazard a guess as to yields from outside the Pale ?

fxcentre.com/news.asp?2584446

Ye olde flight to quality… Interesting that they assert that overall vacancy has fallen… The real question is where does Dublin begin and end? :open_mouth:

I’m assuming they have priced this in and their long term yield target is closer to 4%. Either that’s the case or the supply of greater fools is still plentiful.

This is brilliant news for the investors the bank and Irish people
only a 36% haircut is great.

I would encourage any overseas investors looking at this deal to realise that this kind of investment opportunity won’t last for ever and they would be well off diving straight in and taking as much of this stuff off NAMA as they can lay their paws on…

It’s a 36% haircut on a 2009 price, not a 2006 price!

like I said

brilliant!!