Investment fund buys three prime Dublin retail outlets

The Irish property investment fund IPUT has acquired three prime retail properties in Dublin city centre from the Construction Workers’ Pension Scheme for an all-cash consideration of €21.3 million.

The off-market deal will provide a blended income yield of 6 per cent and increase the value of the assets under management by the fund to €1.4 billion.

One of the investments, 69 Grafton Street, is occupied by the women's fashion trader Vera Moda; another, at 16 Henry Street, is rented by the US video game giant GameStop; while 47-48 O'Connell Street is leased by the footwear specialist Schuh.

The portfolio is currently producing an overall rental income of €1.3 million with a weighted average unexpired lease term of almost six years.

The acquisitions will bring the retail holdings in the overall fund to 25.42 per cent.

Offices are by far the largest constituent part, accounting for 63.66 per cent of the fund, while industrial investments come in at 10.92 per cent.

IPUT's strong performance in recent years has helped it to acquire the property assets of other leading institutional investors including the Bank of Ireland pension fund, the ESB, Diageo and Irish Airline Staff pension fund, which accounted for close to €320 million.

The fund paid a dividend yield of 5.73 per cent in the 12 months up to last December. The annualised total shareholder returns for the same period were up by 37.1 per cent.

IPUT’s acquisition of the Vera Moda outlet will bring to eight the number of stores it now owns on Grafton Street.

BT2 shop

The most notable is the BT2 shop at 28-29 Grafton Street, which formed part of the ESB fund when it was bought in in 2013.

It also holds a 60 per cent stake in the larger than usual Massimo Dutti store, which was previously rented by HMV.

Vera Moda is part of Denmark's Bestseller Group, which has more than 800 shops trading under that name. Its sister company Jack & Jones has a further 2,000 outlets.

The company is paying a rent of €477,000 for the Grafton Street building, which has more than 537sq m (5,780sq ft overall and 139 sq m (1,500 sq ft) at ground-floor level.

GameStop, at 16 Henry Street, adjoins Holland & Barrett at number 17 which is also owned by IPUT.

GameStore is paying a rent of €340,000 and has retail use at ground and basement levels.

The Schuh building on O’Connell Street was redeveloped in at he 1990s and has an overall floor area of 1,141 sq m (12,281 sq ft) including about 232sq m (2,500sq ft) on the ground floor.

The building is rented at €480,000 per annum.

IPUT’s purchase of the three city-centre stores comes after it acquired Carrickmines Retail Park in south Dublin for €90 million.