Grafton sales season gets into full swing
A real gem: Boodles Jewellers is currently trading from 71 Grafton Street, which is for sale for €8m
Wednesday November 11 2009
A doubling of the yields on Grafton St has sparked buying and selling activity on the street. Two more properties are currently for sale with yields of around 6.3pc.
One of these is the AIB Bank branch which is seeking more than €25m from a sale and leaseback deal which could see the buyer generate a yield of up to 6.4pc. Word on the street suggests that AIB will offer a new 20-year lease at a rent which would yield more than 6.25pc. However the agents CB Richard Ellis was unavailable for comment.
Meanwhile F&C, the investment arm of Friends First is understood to be seeking more than €8m for 71 Grafton St where the UK jewellery chain Boodles is paying a rent of €530,000 on a 25-year lease. Neither F&C, nor its agent HWBC, was available for comment.
This four-storey property extends to 4,000sq ft and is located near the Westbury Hotel and Bruxelles bar on the corner of Harry St. The jewellery company opened its Grafton St store as its first overseas store in 2006. A strong covenant, Boodles has four shops in London.
Located
Its head office is located in Liverpool.
Meanwhile, DTZ Sherry FitzGerald is understood to be in advanced negotiations on the sale of three Grafton St shops owned by Royal Liver Assurance.
It had been quoting yields of between 6 and 6.8pc for the properties. Two of them, the McDonald's fast-food outlet and the adjoining Foot Locker store at 9/11 Grafton Street are being offered in one lot for €25m. This would generate a net yield of around 6.2pc.
Though the food chain has a break option in its lease in 2011, it is expected to sign a new lease given that it was McDonald's first Irish outlet and is still trading strongly on the busy street.
Royal Liver's third Grafton store is occupied by the Office shoe chain and DTZ is quoting €15m.
Current occupiers will continue to trade in all five stores.
- DONAL BUCKLEY Commercial Property Editor
Irish Independent
