Saturday 23 September 2017

€985k IFSC retail unit offers initial 8.3pc yield

CBRE are bringing five new retail units, including a cafe, to let at Lidl Ireland's new HQ in Tallaght
CBRE are bringing five new retail units, including a cafe, to let at Lidl Ireland's new HQ in Tallaght
Unit 8, Custom House Square delivers rent of €85,500pa
Ronald Quinlan

Ronald Quinlan

Agents Quinn Agnew are guiding a price in excess of €985,000 for a retail investment located in Dublin's IFSC.

Unit 8, Custom House Square is ideally positioned in the heart of Dublin's financial services centre, fronting onto Mayor Street Lower, a high-profile thoroughfare that benefits from significant passing pedestrian traffic.

The property is located in a key position immediately opposite the National College of Ireland (NCI).

Forming part of a mixed-use development, the unit comprises an end-of-terrace, self-contained, ground floor retail lock-up unit extending to approximately 120 sq m (1,294 sq ft).

Currently in use as a pharmacy, the premises is let to IFSC Pharmacy Ltd - trading as Remedí Pharmacy - under the terms of a 25-year lease from January 1 2001 at a current rent of €85,500 per annum. The lease provides for a full repairing and insuring (FRI) provision and upward-only rent reviews at five-yearly intervals.

The property is held under a long leasehold title, for a term of 950 years from November 13 2000.

The guide price of €985,000 equates to an initial yield of 8.3pc after allowing for standard purchaser's costs. VAT is not applicable on the transaction.

Elsewhere in the capital, Lidl are in the final stages of delivering a new, state-of-the-art 30,000 sq ft store in Tallaght village, clearing the way for the redevelopment of their existing outlet there as Lidl Ireland's headquarters campus.

In tandem with this new development, agents CBRE are bringing five new retail units, including a cafe, to let.

The units, each of which will come with glazed shop fronts and measure approximately 325 sq m (3,500 sq ft), will form part of Lidl Ireland's campus and will be available for tenant fit-out from Q3 2017. The Lidl Ireland campus will have the added benefit of a large surface car park.

Simon Plunkett of CBRE believes the new units will provide occupiers with an excellent opportunity to trade alongside a busy Lidl store in an established shopping destination.

In Dublin city centre, Stephen McCarthy of Savills is quoting a rent of €75,000 per annum for a corner shop at the junction of Chatham Street and Balfe Street in Dublin 2.

The property consists of a retail area of 43 sq m (463 sq ft) at ground floor level and a basement level extending to 33 sq m (355 sq ft). The unit is fully-fitted and ready to trade, according to the agent.

The shop is located within close proximity to Grafton Street in a busy pedestrianised trading location.

According to Cushman & Wakefield's latest Main Streets Across the World report, Grafton Street now ranks 13th in rental positioning by country internationally, and has seen 4.8pc rental growth year-on-year to June.

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