Airbnb on the Market for €41.5 million - Construction Network Ireland - Construction Network Ireland

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Published in Commercial Property on 23/09/2021

Airbnb on the Market for €41.5 million

CNI reports

A fund managed by BNP Paribas Real Estate Investment Managers (BNP Paribas REIM) is currently marketing one of its flagship Dublin properties, 8 Hanover Quay, to a number of established European and domestic investors with a price tag of €41.5 million.

8 Hanover Quay is a waterfront property located at the prominent corner of Hanover Quay and Benson Street in the heart of the thriving South Docklands. The building has been the EMEA HQ to Airbnb since 2016 and is renowned due to its unique warehouse style and impressive tenant fit out.

The subject property comprises 3,747 sq. m. (40,343 sq. ft.) of Grade A office accommodation. The original warehouse was the former Raleigh bicycle factory and was subsequently redeveloped by Targeted Investment Opportunities (“TIO”) , a Joint Venture involving NAMA, Oaktree and Bennett Construction. Practical Completion was achieved in 2016 and the building benefits from a full height central atrium featuring a uniquely impressive natural auditorium making it one of the most photographed office interiors in Dublin. 

The building is 100% let to Airbnb Ireland Limited under a FRI lease with a full parent company guarantee in place from Airbnb Inc. With the next Break Option not until March 2030 the property benefits from an attractive WAULB of 8.50 years to break in 2030, and a WAULT of 14.50 years with the expiry in 2036.

With the current passing rent of €1.7 million (€454 per sq. m / €42per sq. ft.), it is a highly reversionary investment proposition with the next rent review (open market) taking place in March 2026. Additionally the building benefits from strong “ESG” credentials with BREEAM accreditation and BER Certificate of Very Good. Furthermore there is no on site car parking so the use of cycling and public transport by staff further embellishes its green credentials coupled with the repurposing of the former warehouse.

Airbnb also occupies a further 3,715 sq m (40,000 sq ft) across 2 floors in the adjoining ‘Reflector Building’ which is now owned by DEKA. Consent was granted by BNP Paribas REIM to break the boundary wall between the first floor in 8 Hanover Quay and the Reflector to allow a fluid working space for Airbnb employees between both properties.

At the asking price of €41.5 million, it reflects a NIY of 3.73% to a new investor and capital value per sq metre of €11,072 (€1,030per sq ft). Savills and BNP Paribas Real Estate are jointly handling the sale.