CityCentreInvestments: With commercial investments now making top prices in Dublin because of the shortage of supply, a leading business family is to sell three retail units on a key site at the corner of Upper Abbey Street and the new Millennium Walkway, directly opposite the back of Jervis Shopping Centre. Jack Fagan reports.
Colliers Jackson-Stops is quoting a guide price of €12 million for the entire investment - it includes 18 car-parking spaces - which when fully let will produce an income of about €685,000 per annum. It will be sold by private tender on April 29th.
The sale comes at a time when several companies are preparing to cash in on the high prices available by unloading individual properties that are not central to their operations.
The reduced level of investments coming on the market has been attracting more bidders than ever, many of them with spare equity in other commercial investments which have experienced significant capital growth in the past few years.
Some of the properties going for sale are on a site once occupied by a Roches Stores' warehouse.
The area running from the new pedestrian bridge over the Liffey at Ormond Quay back to Upper Liffey Street has undergone major redevelopment in the past two years and is now one of the most attractive shopping and leisure enclaves in the city centre. It has several restaurants and wine bars, other destination shops and even more about to open for business.
Jonathan Hillyer, head of investments with Colliers Jackson-Stops, describes the area as "the heart of the city centre" and says that after the huge regeneration programme of the past two years it is set to go from strength to strength "which should push rental and capital growth in the future".
The investments are to be sold in either one or two lots. The first on offer includes a ground floor reception area now used as a careers centre by the Office of Public Works. The main lease is let to property developer Liam Carroll who has leased the remainder of the building to the OPW. The lease, which provides for five-year reviews, has another 22 years to run and the current rent is €211,542.
In addition there are 10 basement car spaces let to Mr Carroll on a separate four-year and nine-month lease with no reviews from November 2004, at a combined rent of €27,000.
The first lot includes two high profile retail units, one of them with a floor area of 584.89 sq m (6,295 sq ft). Most of this space is currently being fitted out as a pharmacy having been let on a new 20-year lease with no breaks at a rent of €377,768.
The tenant, who has given personal guarantees on the shop, is to sublet part of the space to a convenience store operator. The investment also includes an adjoining retail unit of 62.24 sq m (670 sq ft) and while there has been strong interest in it from traders, the vendors are leaving it to the purchaser to select the tenant and increase the overall rental income. This lot also includes eight car-parking spaces which are vacant.
