Airbnb’s European headquarters for sale at € 41.5m

The sale of Airbnb’s European headquarters is expected to generate strong interest from Irish and international investors amid low interest rates and underperformance elsewhere.

Located at the junction of Hanover Quay and Benson Street in South Dublin‘s docks, 8 Hanover Quay, as it is known, will hit the market later this week on behalf of a fund managed by BNP Paribas Real Estate Investment Managers (BNP Paribas REIM) at the guide price of € 41.5 million.

The sale by the joint agents BNP Paribas Real Estate and Savills offers the potential buyer the possibility of securing immediate rental income supported by a strong tenant commitment and an attractive net initial yield of 3.73%. Both agents declined to comment on the sale when contacted by The Irish Times.

While the subject property has served as Airbnb’s headquarters for Europe, Middle East and Africa since 2016 and includes 3,747 m² (40,343 square feet) of Class A office space, its original warehouse served for many years as a former Raleigh bicycle factory. before being redeveloped by Targeted Investment Opportunities, a joint venture involving Nama, Oaktree and Bennett Construction.

Practical completion was reached in 2016 and today the building boasts a central full-height atrium with a natural auditorium which has made it one of the most photographed office interiors in Dublin.

Number 8 Hanover Quay is leased in its entirety to Airbnb Ireland Limited under a full repair and insurance lease with full warranty from the incumbent parent company of Airbnb Inc, which has been the subject of initial public offering in December 2020 and has a market capitalization greater than that of the United States. $ 100 billion.

Airbnb’s next lease termination option at 8 Hanover Quay is in March 2030, giving the property an attractive 8.5-year term and an unexpired weighted average lease term of 14.5 years with expiration in 2036.

Dublin Market

The property’s current passing rent of 1.7 million euros (€ 454 per m² / € 42 per square foot) offers the buyer a very reversible investment proposition in the context of the current Dublin market, where prime offices in the central business district continue to dominate rents between € 55 and € 60 per m². The next rent revision (free market) is due to take place in March 2026. The mortgage is “very good”. In the absence of on-site parking, staff must walk or cycle. The building has strong environmental, social and governance credentials with a Breeam (Building Research Establishment Environmental Assessment Method) sustainability review. In addition, public transport adds to its ecological qualities.

Airbnb also occupies an additional 3,715 m² (40,000 square feet) over 2 ½ floors in the adjoining Reflector building, which is now owned by German real estate investor Deka Immobilien.

BNP Paribas REIM has agreed to break down the perimeter wall between the ground floor and 8 Hanover Quay and the Reflector Building to allow a seamless working environment for Airbnb employees between adjacent properties.

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