City centre retail building goes on sale for €4m

Another retail building in Dublin’s O’Connell Street going on the market today is likely to be bought by an Irish investor anxious to avail of the capital gains tax exemption before it runs out at the end of December.

Agents Bannon are guiding €4 million for 49 Lower O’Connell Street, a Georgian retail building rented by Footlocker at €240,000 a year.

The investment will show an initial return of just under 6 per cent.

The five-storey over basement building is located at the southern end of the street close to Penneys, McDonald's and Schuh.

It has an overall floor area of 483sq m (5,205sq ft) and previously had retail use on the first floor as well as at street level.

Footlocker concentrates all its selling efforts on the ground floor and uses the additional space for offices and storage.

There are 13 years remaining on the lease with the next upwards only review due in 2017.

David Carroll of Bannon, who is handling the sale, said the building had a "great profile" beside what would be a very busy intersection of the Luas cross-city service and the Luas red line.

He said the €4 million sale would appeal particularly to cash buyers and debt-backed investors.