Galway office block to show a return of 8.6%

Savills is guiding €1.8 million for an office investment at Galway Financial Services Centre which will give an initial return 8.6 per cent.

The modern office building extending to 1,692sq m (18,212sq ft) is let to a Galway-based accounting firm DHKN Ltd at €150,000 per annum. The 20-year lease dates from last January and is subject to a break option in year 10.

Additionally there is a short term income of €12,250 coming from a mobile phone mast rolling licence agreement.

Paul Callanan of Savills says the building is let off a low base so there are good prospects for rental growth in the medium term.

Galway Financial Services Centre is located on Moneenageisha Road within easy access of the N6/M6, N17 and N18, leading to Dublin, Sligo, Limerick and Cork.