InvestmentsAn office building on a busy corner in Dublin 2 may have medium term retail potential, writes Jack Fagan
A well located retail and office investment at the junction of Trinity Street and Andrew Street in Dublin 2 has come on the market with a guide price of €13 million.
The ENFO building is rented by the Department of the Environment as an information centre and is producing a rent of €340,000 per annum. At that rent, the yield will still be only 2.6 per cent, marginally above the 2.4 per cent return reported for the higher quality River Island and the Wallis stores on nearby Grafton Street. The next rent review facing the Department of the Environment is not due until 2010.
The building, which is owned by the Hibernian Group, has frontage on to both Trinity Street and Andrew Street which have a high footfall.
A buyer would probably be hoping that the OPW will not renew the 25-year lease when it runs out in eight years. Should that happen, there would be no difficulty in attracting a high profile fashion trader who could trade out of the ground floor and possibly two upper floors. There is a total floor area of 976sq m (10,500sq ft).
Max Reilly of Jones Lang LaSalle, who is handling the sale of the investment, says the building is "in a superb location and has enormous retail potential as part of the general Grafton Street area". Under the Dublin city development plan, the property is zoned "Z5" which could allow for a change of use to retail on the ground floor which would contribute to a significant value enhancement for investors on the expiry of the lease.
The upper three floors provide office accommodation with raised access floors and suspended ceilings throughout, single glazed windows, air conditioning and a lift that serves all floors. There is also a basement used for stores.
