The prospect of an 8.2 per cent gross yield derived from a strong retail tenant and nine fully let residential units should see strong interest from private investors in the sale of 23-25 Rathmines Road Lower.
The investment, which is being offered to the market by agent Knight Frank at a guide price of €3.5 million, briefly comprises a high-profile mixed-use commercial and residential pre 1963 property of 6,250 sq ft in the heart of Rathmines village.
Spar occupies the entire ground floor, with a large retail/grocery area with storage to the back and side access for deliveries. The retailer’s lease consists of a 25-year term from 12th May 2006, with an annual rent roll of €75,000 annually for the remainder of the term. There is a parent company guarantee provided by BWG for the remainder of the term. BWG Foods is a leading and long-established retail and wholesale business which owns and operates the Spar, EuroSpar, Mace, Londis and XL brands in the Republic of Ireland, working in partnership with independent retailers with more than 1,000 stores across the country.
Above the retail there are nine fully let residential units. At first floor there are two one-bedroom flats and two studios. A one-bed is located at the first-floor return level while four three-bed duplexes make up the second floor. The property has undergone a number of compliance upgrades and is generating a total of €183,780 in annual rental income.
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Additional income is also being delivered from an advertising sign to the side of the property on the gable wall with an licence fee of €26,000 annually.
Ross Fogarty, who is handling the sale on behalf of Knight Frank, has been instructed to dispose of the property by way of auction (unless previously sold). He says: “The lot’s size, location, strength of commercial covenants and the ongoing market demand for residential accommodation makes this opportunity ideal for the private investor market and sits outside the VAT net.”
