Rathgar AIB branch sells for €4m to show return of 7.5%

A private investor is believed to have paid in the region of €4 million for an AIB bank branch at Terenure Road East, Rathgar, Dublin 6, which made substantially more than that figure when it was originally sold at the peak of the property market in 2007.

With the bank currently paying a rent of €275,100 for the building and a rear car park, the new owner can expect a return of around 7.5 per cent on the investment. The 20-year lease of the 874sq m (9,407sq ft) building runs from 2007 and provides for five yearly upwards-only rent reviews. The bank has a break option at the end of year 15.

DTZ Sherry FitzGerald, which handled the sale for a Dublin businessman, has put a value of €500,000 on a site at the rear of the bank which has planning permission for 585sq m (6,295sq ft) of offices.