Retail Investment: West Dublin business park owners have bought the AA's headquarters on Suffolk Street for well above the €4.5m-plus guide, says Jack Fagan

The continuing scarcity of retail investments in Dublin has led to yet another city centre building selling for well in excess of its guide price. The AA motoring organisation's building at 23 Suffolk Street made just over €8 million at tender - a long way ahead of the €4.5 million plus guide price. Fergus Cross of College Properties handled the sale.

The three owners of the Callmount Business Park at Ballymount in west Dublin outbid about a dozen others for the Dutch-style ornate cut-stone retail building which is only 50 yards from the bottom end of Grafton Street.

It is planned to spend at least €1 million on upgrading the building and converting the ground and first floors to provide about 3.716 sq m (4,000 sq ft) of retail space..

Manus Agnew of Quinn Agnew who advised the purchasers, estimated that with two top class retail floors available the rent should easily exceed €300,000 per annum. "We expect a queue of tenants looking for it because the street is now doing so well."

In fact Suffolk Street has become one of the liveliest streets in the city centre, feeding off the every busy Grafton Street. Its first major boost came some years ago when the former Church of Ireland was converted into the city's main tourist information office. This summer the street will also get another shot in the arm when Habitat relocates to the former Bank of Ireland beside Avoca Handweavers.

Though the AA has been in Suffolk Street since 1923, it moved its administrative functions to South William Street some years ago. The AA shop will reopen opposite Dublin City Council's car-park at 56 Drury Street.