Retail Investments:The sale of four Dublin city centre retail investments confirms the strength of the retail market. Jack Faganreports.

Four mainly retail investments off Grafton Street in Dublin 2 have been sold by Royal Liver Assurance for around €25 million, reflecting an overall yield of just over 2 per cent.

The sales underline the continguing demand for small to medium -sized retail lots in the city, much of it coming from business and professional people intent on topping up their private pension funds as well as investors who have done well in the residential market.

From time to time funds like Royal Liver offload small investment properties at the top end of the market with the intention of reinvesting the proceeds in larger lot sizes.

Katie Horridge of DTZ Sherry FitzGerald said the sales clearly illustrated the strength of the retail market.

A business consortium has paid over €10 million for Duke House at Duke Lane and a retail building at 8 Lemon Street.

Duke House, a four-storey over basement office and retail building, is let to Duke House Properties on a 35-year lease from 1987 at a rent of €166,050. The next rent review is due at the end of this year. There are several sub-leases including one to the men's shop Alias Tom.

The second retail property is at 8 Lemon Street, a two-storey over basement building producing €86,000 per annum. The lease is held by the bookmaking firm Paddy Power and the ground floor is sub-let to Image Consultants.

Another property sold, 8 South Anne Street, Dublin 2, is next to Kehoe's pub and is a four-storey over basement modern building. It made €8 million, reflecting a yield of 2.13 per cent. The tenant, Gotham Café, pays a rent of €190,000 per annum which is due to be reviewed in 2009. The ground floor café has a floor area of 111sq m (1,195sq ft).

A private investor paid €5.5 million prior to tender for 24 Duke Street, a three-storey over basement building let to restaurateur Louis Feraud. The current rent of €133,322 was due to be reviewed in April, 2006. Both the ground floor and first floor are in retail use.

Two weeks ago Royal Liver also also sold three office investments in Dublin 2 for almost €50 million. They were bought by Davys Stockbrokers at a yield of 3.6 per cent. Some of the blocks have redeveloment potential.