Retail and residential investment in Temple Bar to make over £5m

One of the key retail and residential property investments in the Temple Bar area of Dublin city is to be sold by tender in one lot next month. Paul McDowell of Ganly Walters is not providing a guideline price for the entire block of properties at Crampton Square but given the current rent level and the estimated rental value, it seems likely that it will make in excess of £5 million.

The portfolio has 11 retail units, including the Elephant and Castle restaurant, 54 flats and 10 car parking spaces, making it the most important investment to come on the market in Temple Bar since the Government introduced special tax incentives about eight years ago. Crampton Square forms a "U" shape with frontage on to Temple Bar, Crampton Quay and Bedford Row. Access to the central courtyard and the flats is from Asdell's Row. Although the original ground floor and basement level was let as 18 retail units, some of them have since been enlarged, reducing the number of tenants to 11. There are ongoing rent reviews in four cases, which are likely to yield significant improvements to the owners because of the increased prosperity of the area. Ganly Walters estimates that the current overall rent of £388,000 will rise to £416,000 by the end of this year and £455,000 by the end of 1999. It is also calculated that the full rental value of the entire property is probably in excess of £522,000.

The Elephant and Castle is easily the best known of the retail units because of its highly successful restaurant business. It is paying a rent of £25,000 for 1,460 sq ft of restaurant space and 836 sq ft in the basement. The agents are forecasting that the rent should increase to £44,000 by the end of next year.

In one of the more recent lettings, Forbidden Planet agreed to pay £54,000 for a combined space of 2,664 sq ft at two levels.

Other retail units are let to Soccer City at £34,000; Bord na Mona at £17,837; Gallaghers Boxty House at £40,000 and the Alamo Restaurant at £10,750. Most of the own-door flats have a floor area of 330 sq ft and are let at up to £70 per week.

There are controlled tenancies in five cases.

The present rent roll from the flats is £155,292 and the agents calculate that this is likely to increase by 5 per cent per annum, bringing full market lettings up to £196,500.

There are also 10 car parking spaces in the courtyard, which are rented on yearly licence agreements and produce £8,964.

Crampton Square was built by Dublin Artisan Dwellings around 1892 and stands three storeys over basement.

The entire block was acquired in the 1980s by property developer Ken Rohan, who sold it on to the present owners in 1986. They have overseen the upgrading of the retail units and the planting of trees and shrubs in the courtyard area. It is thought likely that the portfolio will be bought either by private investors or a property company who could claim 100 per cent capital allowances on any refurbishment work carried out.

The layout of the property would allow new owners to sell off individual units such as flats once they have been upgraded.