Property portfolio in prime Dublin 2 location for €8.3m

The properties are expected to produce a rent roll of €680,000

 

The pent-up demand for retail properties in Dublin’s traditional south inner city is continuing to trigger further sales in an area noted for long-term investments.

The latest high-profile property portfolio going on the market includes St Andrew’s House, a four-storey over basement Victorian block with five shops fronting on to Exchequer Street, as well as two more retail outlets on South William Street.

Fiona Kennedy of CBRE is quoting €8.3 million for the portfolio which is to be sold on the instructions of Grant Thornton, receivers to Clydewell Investments Ltd whose shareholders include solicitor Paul Hanby.

The guide price is the same as that paid recently for four shops, overhead offices and apartments in Exchequer Chambers on the opposite side of Exchequer Street.

The latest sale includes the full frontage of Exchequer Street from Drury Street to South William Street (numbers 22 to 34), with the exception of the French patisserie Ladurée on the corner, along with numbers 4 and 5 South William Street.

The mix of shops, offices and apartments going for sale are currently producing a rental income of €532,000 and with negotiations ongoing in relation to some of the vacant office units and a shop at 30 Exchequer Street, which is due to be let at €75,000 per annum, the rent roll is expected to rise to over €680,000.

Once the rents reach that figure, new owners can bank of a net return of 7.5 per cent.

The highest rent of €146,000 is paid by Grahams Shoes which sublets a large part of its premises to Patagonia at more than €100,000 per annum.

The other tenants are Skinful Affairs at €76,000; Jewel in the Crown, €65,000; The Back Shop, €50,000; and Cowboys and Angels, €45,000.

Overhead offices

Apart from the parade of shops, there are three floors of offices extending to 645sq m (6,943sq ft) and accessed from Exchequer Street.

There is scope to accommodate two tenants per floor, giving each of them 102 sq m (1,100sq ft).

Part of the office space is let to Joseph Deane Solicitors and The Simon Community at €103,000 per annum.

The block also includes three two-bedroom apartments with a living room, kitchen, bathroom and two double bedrooms.

Kennedy says she expects strong interest in the portfolio given that this part of the inner city was thriving and experiencing significant occupier demand for retail units.

“The buildings offer an investor the opportunity to acquire a large piece of real estate within metres of Grafton Street where prime yields are now at 3.25 per cent.”

Exchequer Street, like other adjoining streets, has experienced considerable rejuvenation in recent years with the opening and upgrading of bars, restaurants, coffee shops and food markets and the launch of new fashion outlets to cater for the ever increasing number of Irish and overseas workers visiting the area.

There will be further changes off Exchequer Street later this year when telephone company Eir sells a substantial site at the rear of Exchequer Chambers which is likely to be redeveloped as either a hotel or retail complex.