Davy seeks €26.5m for MetLife’s Dublin office

• Published date: 11 April 2024
• Author: RONALD QUINLAN
• Publication title: Irish Times (Dublin, Ireland)

A fund managed by Davy Real Estate is seeking €26.5 million for a prime office investment 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.

The subject property comprises a six-storey-over-basement office building of 44,735sq ft (4,156sq m) and is leased in its entirety to the medical-device specialist Medtronic and to the global financial services provider MetLife.

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.

While Medtronic’s operational headquarters are in Minneapolis, Minnesota, the...