Three bank investments in next Allsop auction

Up to 120 properties with reserve of €25m-€30m for September auction

The AIB branch at Liberty Square in Thurles, Co Tipperary

Three provincial bank branches, two of them rented by AIB and the other occupied by Permanent TSB, will be among the highlights of the next Allsop Space auction to be held in Dublin on September 16th.

The auctioneers have every reason to be confident of a successful outcome following the runaway success of its last auction on July 1st, when 70 commercial properties were sold for about €30 million.

The fact that more than 90 per cent of the properties were bought by Irish buyers was seen as confirmation of a renewed local demand for commercial assets that have been revalued following the property crash.

The AIB branch at 7 Francis Street, Kilrush, Co Clare
Scott’s Bar at Upper George’s Street in Dún Laoghaire

This time around the high-profile auction house is quoting a combined reserve of €25-€30 million for up to 120 commercial properties.


Landmark building

One of the most interesting investments to be offered for sale will be the AIB branch at Liberty Square in Thurles, Co Tipperary, at a reserve ranging from €2.15 million to €2.3 million.

The landmark building has a ground floor retail banking hall and overhead offices with an overall floor area of 1,027sq m (11,063sq ft). The current rent stands at €215,000 and the lease does not expire until 2029.

Another AIB branch at Kilrush, Co Clare, will be considerably cheaper, ranging in price from €775,000 to €825,000.

It is currently producing a rent of €77,500 under a lease that also runs until 2029. The 390sq m (4,197sq ft) building has a banking hall on the ground floor and offices overhead.

The third financial institution, at Upper Main Street in Letterkenny, Co Donegal, is let to Permanent TSB Holdings at a rent of €114,500.

The lease on the 424sq m (4,567sq ft) building runs until 2022 and Allsop Space has set the reserve range at €640,000 to €680,000.

North Strand Also going under the hammer is a former AIB branch at 87 North Strand Road, Annesley Bridge, Dublin 3, which is currently vacant and is expected to fetch between €275,000 and €295,000.

The mainly single-storey building extends to 245sq m (2,953sq ft) and is close to the Dublin Port Tunnel and Connolly train station. It was one of 67 branches closed by AIB towards the end of 2012 in order to reduce overhead costs.

Allsop Space is also to auction three south Dublin public houses: the Ramblers' Rest at Church Road in Ballybrack (reserve to range from €325,000 to €375,000); Scott's Bar at Upper George's Street in Dún Laoghaire (€315,000- €335,000) and the Village Inn at Gratton Crescent, in Inchicore, Dublin 8 (€190,000- €220,000).

Investors looking for an office investment are bound to be interested in two opportunities on offer at the prestigious Apex Building at Sandyford in Dublin 18.

Allsop Space is guiding €625,000 to €675,000 for an office suite extending to 359.87 sq m (3,874 sq ft) on the third floor, which is let to Pepsi Cola International at a reserved rent of €120,025 a year.

The lease runs until June, 2017 and includes nine parking spaces.

Office suite

A marginally larger office suite on the second floor of the same building has a noticeably lower reserve price of €

375,000 to €425,000.

It is let to Union Heritage Holdings Company on a lease which runs until February, 2016, and is guaranteed by the parent, the American Income Life Insurance Company.

There is also likely to be considerable interest in a cafe investment in Greystones, Co Wicklow, which is expected to make between €580,000 and €620,000.

The ground floor Cafe Gweedore close to the Greystones Dart station at Church Road extends to 72.92sq m (785sq ft) and has a reserved rent of €60,000 a year. The lease is not due to expire until 2032.

Jack Fagan

Jack Fagan

Jack Fagan is the former commercial-property editor of The Irish Times