High-yield portfolio of retail/offices for €3.2m
369 North Circular Road, Dublin 7: let to Paddy Power at a rent of €73,500, giving a return of 10.05 per cent
Four high yielding retail and office investments in Dublin and a retail building in Athlone are going for sale today at an overall price of €3.2 million.
Nigel Kingston of Douglas Newman Good is handling the sale of the portfolio, which is producing €357,000 in rent, giving a purchaser an overall yield of 10.68 per cent.
The five buildings were assembled by a private investor over a 20-year period and have proven a safe investment, according to the selling agent. Another attraction is that a purchaser will not have to pay VAT on the transaction.
The agent plans to seek a single buyer for the properties but, if one does not emerge, the five buildings will be offered for sale in individual lots.
The highest value property, with a guide price of €1.4 million, is 8 North Earl Street, Dublin 1, which is rented by The Carphone Warehouse at €170,000 per annum. It will show a yield of no less than 11.62 per cent. The four-storey over-basement building, one of the most prominent on the street, is beside Michael Guiney homeware. The 25-year lease from 1995 provides for upwards-only rent reviews at five yearly intervals.
DNG is also seeking €700,000 for a two-storey retail building at 369 North Circular Road let to Paddy Power at a rent of €73,500, giving a return of 10.05 per cent. There is just under 10 years remaining on the lease. Paddy Power is also the tenant in a two-storey building at 13 Stoneybatter, Dublin 7, where the asking price is €400,000. The rent of €43,000 a year will show a yield of 10.29 per cent. Paddy Power’s 20-year lease runs from 1997.
An own-door office building in the Clanwilliam Terrace office location at Grand Canal Quay, Dublin 2, also has a guide price of €400,000. The three-storey building is let at €36,000 per annum on a 10-year lease, which runs until the end of 2019.
In Athlone, the agent is seeking €300,000 for a three-storey retail building which is let to shoe retailer Tyler (Ireland) at a rent of €34,500. A 35-year lease runs from 1992 and includes five-yearly upwards-only rent reviews.