€140 million for 25 city centre investments
Receivers put former Liam Carroll properties on market at steep discounts
94 St Stephen’s Green – Department of Justice HQ of 1,979sq m is leased to the State for ¤1.02m until 2018
A portfolio of 25 property investments, mainly in central Dublin and valued at close to €2 billion during the boom, are to be offered for sale on the international market at €140 million.
All but one of the assets belonged to developer Liam Carroll’s Danninger company and were originally financed by Bank of Scotland (Ireland). A further tranche of properties owned by the same developer, including shopping centres in Dún Laoghaire and Clondalkin, and office buildings in the north docklands, are expected to be offered for sale later this year by Nama.
Mr Carroll’s property and investment empire was one of the first to collapse in the property and banking crises with debts estimated at over €1.2 billion.
The bank has enhanced the appeal of the portfolio by including the prestigious period headquarters of the Department of Justice and Equality at 94 St Stephen’s Green which was owned not by Carroll but by Galway-based James E Cormican and his wife, Helen. The bank appointed David Carson of Deloitte as receiver to the 1,950sq m (21,000sq ft) building which is leased by the State until 2018 at a rent of €1,020,000.
The portfolio is producing an overall rental income of €13.94 million, with more than 53 per cent of it coming directly from either central government or semi-state agencies. At the current asking price, a purchaser could expect an income yield of 9.53 per cent.
The buildings are concentrated within Dublin 1 and 7 (accounting for over 82 per cent of the rent) with the remainder in Dublin 2, 4, 8 and 20. The wide range of buildings has an overall floor area of around 50,769sq m (546,500sq ft) and includes 14 offices, 51 retail units and 31 apartments, all of them with the exception of two shops rented on 90 different tenancies. The overall price being quoted equates to a valuation of around €256 per sq ft (€2,755 per sq m).
With a large number of mainly overseas buyers looking for high yielding investments, there is considerable confidence that the Ulysses properties will be sold in one lot. However, if a single buyer does not emerge, then Jones Lang LaSalle plans to break the portfolio into three separate lots, the largest with 11 investments, another with 10 properties and the third lot with four interlinking properties in and around Jervis Street.
There are any number of fund managers equipped to handle such as extensive portfolio and while the strong income returns will appeal to all of them, a close look at the variety of properties will show that the rent roll can be considerably improved through astute asset management.
Apart from the Department of Justice HQ on St Stephen’s Green, other notable properties included in the sale are King’s Inn House, a 5,759sq m (62,000sq ft) multi-let office building on Parnell Street producing €1.48m per annum and Chapter House, a 7,246sq m (78,000sq ft) block primarily let to the OPW, along with nine apartments, on Upper Abbey Street showing an income return of €3 million.