| |
€40
million for four Henry Street shops Investments:
The sale of four adjoining shops on Henry Street
signals that the investment market is about to
come to life. Jack Fagan, Property Editor, reports
The investment market is about to come to life.
With exceptionally strong prices available for
good commercial property investments, several
institutions are lining up to offload a mixture
of retail, office and industrial investments that
have been in their portfolios for years.
First off the block is Royal and Sun Alliance,
which is bowing out of the Irish market altogether
by selling four adjoining shops in Dublin's Henry
Street. They are currently producing a rent roll
of €1,365,000 and are likely to make around €40
million. It is one of the most important blocks
of retail investments to be offered for sale in
years, according to Michael Clarke of Hamilton
Osborne King. The properties are to be sold individually
or as one lot when they go to tender on October
8th.
Three of the shops are rented by leading UK multiples
HMV, Boots and Clinton Cards, while the fourth
is occupied by a successful Irish fashion retailer,
Extrovert. HOK is quoting a guide price of over
€36.7 million for the entire portfolio, a figure
that equates to an equivalent yield of 3.65 per
cent Yields have been dropping on the street because
of the upward movement in rents and the intense
competition for trading opportunities there.
Earlier this summer, the nearby Japan store on
Henry Street was sold to the pension fund of the
Construction Industry Federation for €8 million,
representing an equivalent yield of 3.25 per cent-probably
the lowest recorded on the street. Zone A rents
on Henry Street stand at around €4,305 per sq
m (€400 per sq ft), a long way behind the new
figure of €6,201 per sq m (€576 per sq ft) recently
recorded on Grafton Street. .
|
|
