Sale of landmark Ballsbridge kiosk to test investment market's strength
Just 24 years after it became one of the most expensive pieces of real estate sold in Ireland, the landmark kiosk across the road from the old Jurys hotel in Ballsbridge is once again to test the strength of the investment market.
Natalie Brennan of agent CBRE is quoting “in the order” of €200,000 for the 3.4sq m (37sq ft) kiosk, which made headlines in 1989 when it was bought for £132,000 by the late shopping-centre developer Phil Monahan.
In 1998 it was back on the market once more but was withdrawn when it failed to reach more than £155,000. The vendor had been hoping to sell it for £250,000.
Though the investment probably showed significant capital appreciation towards the end of the 1990s, and this continued through the boom until 2007, there is considerable uncertainty as to how much it will now fetch in the midst of the property crisis.
A new property index published today by Jones Lang LaSalle shows that commercial property values have fallen by 67 per cent since they peaked in the third quarter of 2007.
Prices were still falling right up to Christmas, prompting renewed interest in the Dublin market from wealthy overseas buyers and property funds anxious to avail of the knockdown prices and high returns.
Ballsbridge’s hexagonal kiosk, dating back to 1920, is unlikely to be of interest to foreign buyers, who prefer high-value properties worth in excess of €50 million.
Irish buyers now seldom go above €10 million because of the tight credit facilities.
This means that any competition to buy the kiosk will probably be confined to small punters who would cherish a piece of real estate in Dublin 4.
The property is let to Silverskin Coffee Roasters for two years from last April at a rent of €15,600 per annum. The trader will have the right to extend the lease for another two years but after that the new owner will have the right to reclaim possession.
Ms Brennan said it would be no surprise if the kiosk was bought by a media company planning to use the unique location for promotional activities.