Heather House - a modern office investment in Sandyford, Dublin 18 - comes on the market today with a guide price of €20 million. Colliers Jackson-Stops says the multi-let block has redevelopment potential in an area where higher densities have already been achieved.

The five-storey building at Heather Road is producing a rental income of €719,771 but, according to the agent, the reversionary value is around €1 million per annum. If the guide price is secured, an investor will have to settle for an initial yield of 3.22 per cent but, when rents are reviewed, the return should rise to 4.48 per cent inclusive of transaction costs.

The building, owned by a group of investors, has a gross floor area of 3,502sq m (37,695sq ft), including an attractive double-height glazed reception area along with a stone-clad tower.

There are 82 car-parking spaces, most of them at basement level, and two eight-person lifts.

The building stands on a site of 0.19 of a hectare (0.48 of an acre) which is zoned objective E "to provide for economic development and employment".

Property values have soared in Sandyford in recent years because of increasing densities and the impact of the successful Beacon South Quarter.

Nick Coveney of Colliers says that, with each development site pushing the planning boundaries in terms of height and densities, and the increasing number of cases being referred to An Bord Pleanála, developers found themselves in a situation where they purchased sites which were not producing income while the development was in limbo.

Heather House had the advantage of a rental income and short-term leases in most instances with mutual break options available on the longer leases. This would allow any potential purchaser the flexibility of applying for planning permission while receiving an income with "the added comfort that there are no long term sitting tenants".

The tenants are Welplan (Ireland) Ltd, Masstock, Airvod, Moresoft, Threefold, Bibby Financial Services Veris plc, SHR Consulting, Global Investment Systems (Ireland) Ltd and Olympic Lifts.

€190 million Arklow centre opens tomorrow, writes Jack Fagan, The Irish Times, 3 October 2007

Retail Market: The Bridgewater centre will greatly strengthen the appeal of Arklow with an excellent mix of shopping, commercial/office and residential space.

The Co Wicklow town of Arklow will get a shot in the arm tomorrow with the opening of the Bridgewater shopping centre, an impressive retail and leisure development overlooking the Avoca river.

The shopping complex, which is fully let, will have Dunnes Stores as the anchor tenant. It is less than 200 metres from the main street. The €190 million development also includes 23 apartments, 10 of which sold last weekend including a large penthouse. The 37,160sq m (400,000sq ft) scheme will greatly strengthen the appeal of Arklow with an excellent mix of shopping, leisure, residential and commercial/office space.

It stands on an attractive 13-acre site assembled by a consortium which includes local builders Allen & Smith and property agents Declan Stone and Roderick Downer.

The centre will have over 40 retailers, a nine-screen cinema complex, four waterfront restaurants, a food court with six outlets, an office block of 3,065sq m (33,000sq ft) and over 1,000 car-parking spaces.

Dunnes Stores is believed to have paid in the region of €15 million for 6,503sq m (70,000sq ft) of space, including a store of 4,645sq m (50,000sq ft).

The deal will give Dunnes an important new base in Arklow where the Tesco foodstore has had a clear run for years on the main street. Dunnes has also had a drapery store on the main street for some years. Two independent fashion traders, also on the main street, have closed in the run-up to the opening of the shopping centre and a number of other traders are also understood to be considering their options.

Bridgewater has attracted a strong list of other tenants including Next, TK Maxx, New Look, Argos Extra, River Island, Oasis, Warehouse, Principles, Pamela Scott, Virgin and Best Menswear. The cineplex, to be run by Gaiety Cinema Group, is the only such facility in the 100kms stretch from Dún Laoghaire to Enniscorthy.

Declan Stone, who is also managing director of Colliers Jackson-Stops, says the centre would be a symbol of the economic vibrancy of the south-east where high levels of disposable income, consumer demand and community partnership and vision have all combined to deliver a superb and much needed fashion and lifestyle centre. The region between Dublin and Waterford has been seriously lacking a high quality retail and leisure development up to now.

The joint letting agents were Colliers Jackson-Stops and Bannon Commercial.