12 Jul 2023
M7 sees strong rental growth across its suburban Dublin offices
M7 Real Estate, the pan-European investor and asset manager specialising in multi-tenanted properties, continues to see strong demand from a diverse mix of occupiers for the offices within its pan-European value add fund, M7 European Real Estate Investment Partners (“M7 EREIP VI” or the “Fund”). Following the most recent letting to St Vincent’s Hospital at the Nutley building, Merrion Centre, Dublin 4, the asset is now at 100% occupancy, with the wider portfolio increasing to 97% let, having secured 30 new lettings and lease renewals over the last 12 months.
This leasing activity has generated rental growth for the Fund of close to 12% across its suburban office portfolio in Dublin, Ireland, demonstrating the underlying strength of the market for well-located office assets located outside of the CBD.
At the Nutley office building in South Dublin, M7 has recently completed the letting of c. 4,160 sq ft of space to St Vincent’s Hospital. St Vincent’s Hospital has agreed a 10-year lease for the space, which it will use for its administrative hub.
This combined activity has contributed to a reduction in vacancy in the M7 EREIP VI portfolio to just 3% and extended the WAULT to over four years. EREIP VI’s Irish portfolio extends to more than 200,000 sq ft of commercial space that has predominantly been acquired over the last year. The office assets where leasing activity has taken place include Sandyford Business Centre, Nutley Buildings, Merrion and Swords Enterprise Park.
Other new lettings have been agreed with OOMI Travel, Fingal County Council, Silicon Highway, Irish Centre for Cycling, Baxter Healthcare, RFC Security, Kavanagh Forensics and O’Briens Landscaping. Additionally, several large renewals have been completed with the Embassy of Japan, AC Neilson, Peter Finn, Eurofins Biomnis Ireland, Arkphire Ireland, Bonkers and Oliver Sears Gallery.
John Murnaghan, Managing Director at M7 Real Estate Ireland commented: “We are seeing significant growth across our office assets in Dublin, demonstrating that the leasing market for well-located offices outside of the city centre is very much alive and kicking, despite the wider negativity surrounding the sector.”
“Following the successful implementation of active asset management strategies by our team on the ground, we have been able to realise healthy growth in rent while securing new leases and renewals with a diverse mix of excellent tenants. A key part of our strategy is to improve the sustainability credentials of the portfolio through targeted capital expenditure which is a constant feature of our offer.”