Dublin city centre investment at €2.3m offers 10% net initial yield

Nos 3, 4 and 5 Dorset Street Lower set to deliver €254,000 in annual rent by March 2020

Numbers 3, 4 and 5 Dorset Street Lower are centrally located at the junction of Dorset Street Lower and Eccles Street/Temple Street

Numbers 3, 4 and 5 Dorset Street Lower are centrally located at the junction of Dorset Street Lower and Eccles Street/Temple Street

 

Joint agents Knight Frank and Citywide Auctioneers are guiding €2.3 million for a substantial mixed-use investment in Dublin city centre.

Numbers 3, 4 and 5 Dorset Street Lower comprise a restaurant, licensed premises, off licence, offices and apartments, and offers the investor an opportunity for excellent reversionary and value-add potential.

While the investment is currently generating an overall rent roll of €199,000 per annum, this figure is due to rise to €254,000 in March 2020. This increased rental income offers the prospective purchaser the opportunity to secure a net initial yield of up to 10 per cent once standard acquisition costs of 4.46 per cent and 9.96 per cent are applied to the residential and commercial elements of the investment.

The subject property comprises a licensed premises (bar, restaurant and off-licence) with 352sq m (3,788sq ft) at ground level with 289sq m (3,110sq ft) basement, currently in use as Wasabi Restaurant. This premises extends to the complete ground level of 3, 4 and 5 Dorset Street Lower, and consists of a bar/lounge area, kitchen, separate customer and staff toilets, smoking area, and an off licence, along with basement and cold room. The licensed premises is on a 15-year IRI (internal repairing insuring ) lease from March 2018 at a current rent of € 55,000 per annum, increasing to € 110,000 per annum in March 2020.

The first floor of No 3 Dorset Street consists of an own-door office leased to Mater Private on a five- year lease which expired in August 2015 with a rent of €42,000 per annum. The offices consist of two open-plan office spaces, two smaller offices, kitchenette and toilets totalling 250 sq m (2,691sq ft).

Upper floors

The upper floors of Nos 4 and 5 Dorset Street consist of 291sq m (3,132sq ft) of currently vacant office space, in need of refurbishment and with potential for change of use to residential (subject to planning permission).

To the rear of the property and accessed off Georges Place are five apartments, two two-bedroom apartments (58sq m), a two- bedroom duplex (74sq m) and two three-bedroom with study units extending to 109sq m. All five apartments are subject to standard residential tenancies, and are currently generating €102,000 per annum.

Numbers 3, 4 and 5 Dorset Street Lower are centrally located at the junction of Dorset Street Lower and Eccles Street/Temple Street, and have dual access from Dorset Street Lower and George’s Place. The subject property is just 700m from O’Connell Street.