Grafton Street buildings in portfolio bought by Irish Life

IRISH Life has paid close to the asking price of £6.75 million for a portfolio of properties which has been owned for a long period by Sun Life of Canada. It includes two adjoining buildings at the bottom of Grafton Street occupied by Irish Nationwide Building Society and Specsavers.

The acquisition will provide an initial yield of 6 per cent, though it is thought likely Irish Life will sell on some of the seven properties in the portfolio such as two industrial investments in Dublin.

The portfolio is currently producing rents of £434,000 with reversionary potential from rent reviews which are due between the middle of this year and the end of 2000.

Irish Life outbid a number of private investors, property companies and institutions for the portfolio, which was marketed as a single entity. Alan Bradley of Jones Lang Wootton eventually disposed of the properties through a "best bid" process. Ann Hargaden of Lisney acted for Irish Life.

The most valuable properties sold, 112 and 113 Grafton Street probably account for about half of the overall valuation. Specsavers is paying a rent of £56,000 for the ground floor (1,450 square feet) and basement of 112 Grafton Street.

Irish Nationwide pays a rent of £65,000 for the basement, ground and first floors of 113 Grafton Street and £59,000 for the upper floors of the two buildings. The rent of the retail section is due to be reviewed this summer and the overhead floors in February, 1998.

The next review of the Specsavers unit Mobs not take place until 2000.

Irish Life owns five other buildings in Grafton Street, which have proved a good long-term investment.

Buildings in Dublin's premier shopping streets have been slow to come on the market over the past six months because of the rapid growth in retail values.

Another retail unit sold is at 2 South Anne Street, just off Grafton Street, where men's fashion retailer Homme pays a rent of £40,000 for the ground, basement and first floors.

The rent comes up for review next November.

The other Dublin retail investment, 8/9 Moore Street, is occupied by Sheils Restaurant at a rent of £32,000. The next review is due in 1998.

In Cork, Irish Life is buying number 77 Patrick Street, a 3,000-square-foot retail store which is producing £45,000 per annum.

The portfolio also includes two stores in Limerick at 2/3 William Street. They are rented by H. Samuels at £50,000 per year and Photoworld at £20,000.

The two industrials sold are a 7,500-square-foot unit at Glasnevin, Dublin 9, which is occupied by Pressco at a rent of £20,000, and a 17,000-square-foot building occupied by OBF Distributors at the Western Industrial Estate, off the Naas Road.

A bar in Balbriggan, Co Dublin, Ennis's public house, at Bridge Street, has been sold at auction for £600,000 by Cumisky Cooke Scales.

In Dun Laoghaire, Blacktie, the formal wear rental chain, has paid £223,000 at auction for a retail premises at 50 Lower George's Street, Dun Laoghaire.

The building backs on to the Bloomfield Shopping Centre, which is to open in May.

The Dun Laoghaire premises will be one of four new stores to be opened by Blacktie this year. The company has opened a new unit in Terenure along with a head office and central distribution warehouse.

Blacktie has also acquired a leasehold interest in 125 Patrick Street, Cork. The four-storey corner building opposite the Merchant's Quay Shopping Centre is due to open for business early next month.

Hamilton Osborne King and Corry McMahon handled the sale of the Dun Laoghaire, Co Dublin, premises.