Norwegian buyer acquires Ulster Bank building on Dublin’s O’Connell Street
Overseas investor pays almost €11,500,000 for landmark on capital’s main street
2-4 Lower O’Connell Street, Dublin 1
A Norwegian investor has paid €11,437,000 for a landmark building at 2-4 Lower O’Connell Street, Dublin 1, which is let to Ulster Bank on a long-term basis.
The initial yield will be 5.08 per cent after allowing for standard purchasers costs.
DTZ Sherry FitzGerald had been guiding €10,025,000 for the freehold interest in the bank building which has a parent guarantee from Royal Bank of Scotland.
Ulster Bank’s 30-year full repairing and insuring lease dates from December, 2007, and has an unexpired term of 23 years.
The investment is generating a rent of €549,856 per annum.
Unusually the lease is subject to annual rent reviews based on the United Kingdom Retail Price Index (RPI) subject to an annual cap of 3 per cent.
The UK RPI has averaged 3.4 per cent over the past 30 years.
The vendor, British financial services company Legal & General, topped up the rent to €606,938 until the December, 2017, rent review, guaranteeing that the investor can expect a net yield of 5.08 per cent.
Located on the east side of Lower O’Connell Street, between O’Connell Bridge and Abbey Street, the building comprises two interconnected five-storey over basement period structures.
There is a banking hall on the ground floor, storage and ancillary space at basement level and offices on the upper floors.