Wednesday 28 September 2016

€4.25m for Dublin city portfolio with initial yield of 9pc

Published 15/09/2016 | 02:30

Carrolls has over 14 years remaining on its Talbot Street lease
Carrolls has over 14 years remaining on its Talbot Street lease

Investors will be given an opportunity this week to secure their part in, and profit from the ongoing regeneration of Dublin's city centre with the arrival on the market of a high-profile mixed-use portfolio at a guide price of €4.25m.

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The Talbot portfolio promises prospective purchasers an "attractive" initial yield of 9pc according to Roisin Rafferty of Savills and offers what she describes as "a superb opportunity" to acquire a predominantly retail offering where the weighted average unexpired lease term (WAULT) of approximately 10.5 years.

The investment's primary appeal is derived from Carrolls of Ireland, a well-known Irish-owned company established in 1982 with approximately 15 Irish-themed souvenir stores. Carrolls has over 14 years remaining on its lease and accounts for approximately 42.5pc of the Talbot portfolio's total income. Other noteworthy tenants include the Abbey Theatre and the renowned 101 Talbot restaurant.

The entire investment is being offered for sale as one lot and comprises five ground-floor retail units ranging in size from approximately 433 sq ft to 5,051 sq ft, a first-floor restaurant, three lock-up garages used for car parking located on Marlborough Place and a first-floor theatre extending to approximately 2,761 sq ft, which is accessed from Marlborough Place. The portfolio is multi-let with a current rent roll of €399,300 per annum, subject to six lease agreements, three car parking licences and a short-term agreement with the Abbey Theatre.

Four ground-floor retail units within the block were sold by way of fee farm grants. The upper floors were also disposed of by way of fee farm grant interests and are now occupied by the Dublin Central Inn Hotel, and comprise a 60-bedroom hotel.

The Talbot Street area is undergoing a regeneration and is only a short walk from O'Connell Street and within 10 minutes walking distance from Temple Bar, Trinity College and Grafton Street. Located in close proximity to a number of key transport links including the Dart, Luas and numerous bus routes, the new Luas green line stop on Marlborough Street will further enhance the area, as will the proposed development of a 158-bedroom boutique hotel by Tetrarch Capital hotel developments at Sackville House, and the redevelopment of the Irish Life Centre at Abbey Street Lower towards Marlborough Street.

Roisin Rafferty of Savills says: "With the majority of income secured against Carrolls of Ireland, and with an average unexpired lease term of approximately 10.5 years, this is a very attractive asset and will appeal to a wide range of investors looking for a centrally located retail portfolio offering good growth and asset management prospects."

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