A new benchmark for a retail lease in Dublin city centre has been set with the sale of the former Makulla's fashion shop at 11-13 Suffolk Street, which had been trading recently as No Name. The owner of the building, Mercury Engineering, exercised its right to buy in the lease at the same price as the highest tender - just over £800,000. Avoca Handweavers was believed to be the top bidder. Mercury, which is based in Sandyford, Co Dublin, bought the building for around £2 million about three years ago. It now plans to increase the retail area s on the ground, basement and first floors to 6,000 sq ft. A side entrance is to be created to allow separate access to two office units on the top two floors.
Agents Douglas Newman Good Commercial and Brendan J Walsh are to seek a tenant for the enlarged retail area at a rent of £210,000 per annum, as well as a premium, for the retail area. Businessman Hugh O'Regan of the Thomas Read bar group paid around £700,000 for the lease last year, but put it back on the market after failing to get planning permission to convert it into a mixed pub and fashion outlet. This would have involved using the space as a retail centre during the day and a licensed premises after 6 pm. The building was held on a 35-year lease from 1993 at a rent of £155,000. Larry Brennan of Hamilton Osborne King was joint agent on the sale of Mr O'Regan's lease.
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