Tara St retail units for €1.095m

Two retail units on Tara Street in Dublin 2 owned by the property developer and founder of D2 Private, David Arnold, are to be offered for sale on the instructions of Nama.

Michele McGarry of Colliers International is seeking €700,000 for the Spar convenience store close to The Irish Times head office and €395,000 for the adjoining Prontaprint store.

The two shops form part of an apartment development on part of the grounds of Tara Street fire station. The development was completed by Mr Arnold during the property boom.

The Spar extends to 175sq m (1,900sq ft) and trades exceptionally well because of its proximity to Trinity College Dublin and Tara Street Dart station.

Rent

The tenant pays a rent of €60,000 per annum under a 25-year lease from 1999.

An upwards-only rent review is due in March 2019. In the meantime, a purchaser can bank on a net initial yield of 8.2 per cent.

Prontaprint will be paying a rent of €33,000 until 2017, when it is due to revert to the original rent of €48,300.

The 109sq m (1,180sq ft) unit also has 10 years to run on the lease.

An investor paying the quoted selling price can bank on a net return of 8 per cent.