Property developer David Arnold is to sell six individual retail investments including a McDonald's fast-food restaurant at the recently opened Maple neighbourhood centre, at the start of the Navan Road, in Dublin 7. Hamilton Osborne King is to sell the investments by tender in the expectation that they will produce yields of 5 to 6 per cent.
The largest unit, with over 5,500 sq ft at two levels, is occupied by McDonald's on a 25-year lease at a rent of £75,000. There are no break options. A 6 per cent yield would equate to a price of £1.15 million, while a 5 per cent yield equates to a value of £1.38 million.
The other large tenant, Iceland, is paying a rent of £95,000 under a 20-year lease which provides for a break option in the 15th year. Chartbusters is paying a rent of £70,000 for the first two years and £75,000 for the next three. It occupies 3,126 sq ft.
A Spar convenience store has a more flexible arrangement, paying a staggered rent of between £30,000 and £35,000 up to the fifth year, when it has a break option. Also for sale is the O'Briens off-licence outlet, which pays a rent of £30,000. It is due to move up to £32,000 in years three, four and five. The smallest investment available, an ATM rented by AIB, produces rent of £7,500. The bank has break options at the end of years 10 and 20.
Work is to begin shortly on a 10,000 sq ft library on an adjoining site, Next to it, Motor Services is finalising plans for an extensive residential/retail development including four car showrooms.
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