RETAIL INVESTMENTS:An attractive retail building just off Grafton Street will test the investment market's appetite for well located shops.
THE STRENGTH OF the Dublin retail investment market will be tested shortly when a well located shop in the city centre goes for sale by private treaty.
Katie Horridge of DTZ Sherry FitzGerald is seeking over €4.5 million for the freehold interest in 1 South Anne Street which trades as Monica John.
It is producing a rent of €108,000 per annum and, at a price of €4.5 million, would show an initial return of 2.13 per cent. The next review under the 35-year lease will take place in 2010.
Located along a busy stretch of South Anne Street, next to Grafton Street, the building has retail use at ground and first floor levels as well as storage space in the basement and on the second floor.
The two floors of retail space extend to 76.6sq m (825sq ft) out of a total of 137sq m (1,475sq ft).
Horridge, who is selling the investment for a privately managed pension fund, said it was rare enough that investors got the opportunity to acquire an attractive retail building in such a well established, high quality retailing area beside Grafton Street.
DTZ Sherry FitzGerald secured top prices last June when they sold four other retail investments for Royal Liver Assurance in much the same area.
It got around €10 million from a single investor for Duke House on Duke Lane where the tenants include Alias Tom and 8 Lemon Street where Paddy Power is paying a rent of €86,000.
The Alias Tom rent of €166,000 was due to be reviewed last December. The overall investment showed an immediate return of 2.3 per cent.
On South Anne Street another private investor paid €7.5 million for the Gotham Cafe which is rented at €190,000.
The yield in this case was 2.27 per cent.
A third investor settled for an initial return of 2.5 per cent when he paid €5.5 million for the Louis Ferraud shop at 24 Duke Street. The rent in this case is €133,322.
