Overseas Investments: Corporate Finance Ireland and Redmond Capital are due to complete contracts later this week to acquire a retail building in the centre of Times Square in New York for $44 million (€34.2 million).
The purchasers plan to syndicate the property which is expected to generate a compound annual return of 8 per cent, according to Dublin chartered surveyor William Redmond, founder of Redmond Capital.
The five-storey I. Miller Building at the corner of Broadway and 46th Street dates from 1939 and has a floor area of 1,123sq m (12,091 sq ft). The lease, to TG Fridays, has another 19 years to run and provides for annual rent increases of 2.5 per cent.
The forecast net operating income for 2005 is $2.2 million (€1.7 million) and this is expected to increase to $2.6 million (€2.02 million) within five years.
The acquisition is to be financed by investor contributions of about $14 million (€10.9 million) and limited recourse bank borrowings of $33 million (€25.7 million) from Anglo Irish Bank.
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