FIFTY BRANCH OFFICES operated by the Irish Nationwide Building Society, and valued only two years ago at €45.7 million, are now expected to make in excess of €20 million when they are offered for sale next week by private treaty.
Most interest is likely to centre on the high profile branch at the junction of Dublin’s O’Connell Street and Eden Quay which has a guide price of €1.25 million. Although it stands over five levels it has a relatively tight floor area of 301sq m (3,244sq ft) including 62sq m (670sq ft) on the ground floor. One possibility is that it will be bought by the adjoining owner, Ulster Bank, not only for the extra space but to allow the bank to mount bold signage like the building society has had on one of the most prominent buildings in the city centre. The block was built in 1922 on the site of Hopkins Hopkins,watchmakers and jewellers, whose building was destroyed in the 1916 Rising.
Interestingly, the building society’s most valuable asset, the head office at Grand Parade, Dublin 6, is not for sale at this stage but if and when it goes on the market there will be no shortage of bidders, not only because of the high quality of the former Carrolls cigarette office block but also the fact that it has a vast surface car park around it with development potential.
Karl Stewart, retail director with DTZ Sherry FitzGerald, has been appointed to handle the sale of what is probably the largest ever high-street property portfolio to go on the market in this country. There are 46 freehold properties in all – some with tenants in the upper floors – four investment opportunities and four leasehold buildings.
The spread of properties is predominately in the Leinster region and in most cases they are particularly well located on the high streets.
The likelihood is that the branches will be sold either on an individual basis or in groups. DTZ says it is also open to expressions of interest for the entire portfolio.
Stewart says the properties offer “some exceptional opportunities” for investors, retailers and owner-occupiers looking for prominent trading pitches.
The sale had been expected for some considerable time following the Government’s decision to merge Irish Nationwide and Anglo Irish Bank before running down the two bankrupt lenders. Most of their functions have now been taken over by the Irish Bank Resolution Corporation which is overseeing the sale.
Interestingly, the top guide price is not for O’Connell Street but for the Dundrum branch which is expected to make at least €1.45 million. It includes three ground-floor retail units with overhead offices and, though one of the trading positions is vacant, the building is still producing over €100,000 in rental income from Sherry FitzGerald and Oxfam. There is car parking at the rear of the building.
The Ennis branch in O’Connell Street also has a high rating and a guide price of €1.4 million. The building has six units in all, four of which are rented – one to a pharmacy – and is producing an income of over €110,000 a year.
Three branches have similar guide prices of €425,000. These are at Eyre Square in Galway where there is a ground floor area of 139sq m (1,500sq ft), and High Street, Kilkenny, where the building extends to 276sq m (2,970sq ft) over four floors. The third building is at Cruises Street in Limerick where there is no less than 92sq m (1,000sq ft) at street level and two overhead floors.
The selling agent is expecting very considerable interest in the main Cork branch at 33/34 Patrick Street and though no guide price is being issued at this stage it could make close to €2 million. The ground floor runs to almost 146sq m (1,572sq ft) though it is not a straightforward sale as number 34 is a leasehold premises.
DTZ also expects some competition for the branch at The Mall in Tralee where there is a floor area of 92sq m (1,000sq ft). The guide here is €400,000. In Tullamore, the courthouse-style building on O’Connor Square is expected to fetch around €300,000.
The branch is Navan has a somewhat lower guide of €205,000 and, according to one interested party, it may well revert to its original trade in herrings and rabbits.
See DTZSF.com or freephone 1890 502011.
