Retail investment properties in city centre

With demand steadily picking up again for retail investment properties in Dublin city, two agents are hoping to cash in on the improved market conditions by offering buildings for sale in Upper Baggot Street and Dame Street.

DTZ Sherry FitzGerald is quoting €900,000 for 7 Upper Baggot Street which is to be sold on the instructions of liquidator Ken Fennell of Kavanagh Fennell. The well maintained three-storey over basement building extends to over 283 sq m (3,048 sq ft) and is currently producing rents of €57,000 from a Chinese restaurant and takeaway and a further €50,000 from a beauty salon.

The Chinese restaurant, Tin Tin, has a 10-year lease from the start of 2012 with five yearly upwards only rent reviews. There are break options in the lease in years three and five.

Essential Beauty Salon has a 25-year lease from 2005 of the first and second floors with five yearly upwards only rent reviews. At the asking price of €900,000, investors can expect a return of 11.4 per cent.

Attractive pricing
Clive Roche of DTZ said there was now a "distinct shortage" of well located retail investment opportunities of a similar lot size for investors looking to avail of the attractive pricing and the moratorium on capital gains tax.

DTZ has just closed the sale of a high profile corner building at Lower Baggot Street for €1.2 million. The Georgian building has contracted rents of €179,000 with €73,000 coming from Café Boulevard, €26,000 from Grafton Barber and €50,000 for offices on the first and second floors rented by Carrier Web. A new restaurant at basement level has agreed to a rent of €30,000.

Meanwhile, HT Meagher O’Reilly is looking for €400,000 for a prominent investment property at 80 Dame Street which is currently producing annual rents of €40,340 from four tenants. The ground floor and basement are occupied by Fogarty Lock & Safe Company on a 35 year lease from 1989 at €25,000 per annum. The upper floors are let to three parties on one to three year leases at a combined rent of €15,340.