€6.15m paid for Bank of Ireland branch in Tallaght

A group of private investors have set what is believed to be a new benchmark for an investment involving a bank branch by paying €6.15 million for a Bank of Ireland premises at Tallaght, Dublin 24. The selling price is €1,650,000 above the guide and will give the new owners a return of 5.55 per cent – probably the lowest yield since AIB and Bank of Ireland off-loaded a large number of bank branches during the boom.

Enda Moore, of agents Hooke & MacDonald, who handled the sale, said the investment attracted a lot of interest among Irish and overseas investors proving that there was still a strong demand for good quality assets with secure tenants.

The Tallaght branch is located in the mixed use Priorsgate development at the junction of Main Street and Greenhills Road. The banking hall and office extend to 760sq m (8,180sq ft) and has the use of 12 car parking spaces at basement level. The bank is currently paying a rent of €357,000 and the lease provides for minimum fix rental increases of 15 per cent every five years under which the rental income will rise by more than 52 per cent over the remainder of the lease term.

Priorsgatre was developed in 2007 by P Elliott & Co and includes 198 apartments on the upper floors with commercial units below including Spar and Unicare Pharmacy as well as the bank. The Canadian investment fund Ires REIT recently acquired more than 100 of the apartments.