Richard Coffey, Managing Partner at Ireland World Investments (IWI) said he was extremely disappointed that IWI were not successful in their recent bid for the property SAP Ireland City West Business Campus for private clients. It is widely believed that an overseas fund at the eleventh hour picked up the office investment in Dublin at a yield of 11.2 per cent – by far the highest return offered in over a decade for a top grade asset. IWI acting for private clients were initially the preferred bidder and were offered the building but DTZ Sherry FitzGerald later agreed sale terms with an international fund at marginally over €14 million for the two-storey office block let to an international company at Citywest Business Campus in Dublin 24. The original asking price had been €15.5 million.
The offices are let to SAP Ireland, part of the German software giant, on a 25-year lease from 2001 at an annual rent of €1.64 million. The building is owned by developer Davy Hickey Properties which has managed to attract about 120 companies to Citywest over the past 15 years. The 11.2 per cent yield after costs on the SAP office block is a long way from the 6.5 per cent returns offered to Citywest investors in a number of pre-funding deals during the peak.