Evans store on Henry Street bought by AEW tops €20m

International property manager AEW has made its first significant investment in the Dublin property market, buying the high-profile retail premises occupied by women's fashion outlet Evans at 42-43 Henry Street.

AEW had been underbidder on a number of Dublin properties over the past two years, but was successful on this occasion, paying about €20.5 million for the investment, which will show a return of 4.2 per cent.

Kevin McMahon of Savills, who had been guiding €18 million for the property, declined to comment. AEW, which outbid four other investment funds, is a leading global real estate manager with more than €19 billion of real estate assets under management in Europe.

The latest high-profile retail sale is at the corner of Henry Street and Moore Street and is let in its entirety to the Arcadia Group at a rent of €865,000 per annum. The 35-year lease from 1985 has 3.95 years to run.

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The four-storey over-basement terraced building is one of the largest on the street, with an overall floor area of 961 sq m (10,342sq ft) including 260sq m (1,800sq ft) at street level.

The ground, basement and first floors are in retail use, while the upper floors are utilised as offices, storage and ancillary accommodation.

Much of the appeal is in its 14.5m of frontage on to Henry Street and a further 12m return on to Moore Street. Retail investments on Henry Street and the adjoining Mary Street are in constant demand from property funds.

In September 2014, Irish Life put down a marker when it settled for an income yield of 3.95 per cent after outbidding several funds to buy four adjoining buildings at 18-21 Henry Street for €34 million.

Portfolio

The fund is expected to amalgamate some of the buildings to meet the increasing demand from international fashion retailers for large floor plates.

Nine months after the big purchase, Irish Life was back in the market again, buying two further buildings at 51 and 52 Henry Street as part of the €154 million Sovereign portfolio.

Last October, a resurgent Friends First fund was the centre of attention when it bought the telecoms shop occupied by 3 at 35 Henry Street for €9.5 million – a figure that will show an income yield of 4.2 per cent.