Friends First pays about €9.2m for 3 store on Henry Street

Property fund outbid several other investors by paying almost €1m above the guide price

Friends First Irish Commercial Property Fund has outbid several other investors to buy the 3 store at 35 Henry Street, Dublin 1, for almost a €1 million above the guide price.

Savills quoted €8.25 million for the retail investment but with several funds chasing the property, Friends First seemed determined to have its way by offering in the region of €9.2 million for it. With the telecoms company 3 paying a rent of €425,000 per annum and a long unexpired term of more than 15 years to run with the security of upwards-only rent reviews, Friends First has settled for a net initial yield of almost 4.5 per cent. Agent TWM advised the purchaser.

The company was also one of the underbidders for the Grafton Collection, which was bought by Hines for slightly over €55 million. It included Hickey's pharmacy at the junction of Grafton Street and Duke Street in the city centre. Savills had been guiding €40 million for the portfolio which produces a rent roll of €1.95 million.

Jack Fagan

Jack Fagan

Jack Fagan is the former commercial-property editor of The Irish Times