Investors are motoring as NCT centre sells for €141k over guide
The premises that accommodates Monaghan's national car testing (NCT) centre was sold at auction recently for €361,000 or €141,000 over its €220,000 guide price.
The relatively strong price was mainly attributed to the competitive bidding from local and national bidders who were attracted by the leasing agreement.
It is let on a 30-year lease with 10-year break provisions at an annual rent of €27,500 to Applus who run the National Vehicle Testing Centres throughout the country.
This rent will see the west of Ireland purchaser achieve a yield of 7.63pc. While the price is a multiple of 13 times the passing rent, it still equates to a keen yield for a commercial property in a regional town.
Loman Dempsey, senior surveyor with joint auctioneers Savills said: "We had both local and national interest in this asset with the eventual purchaser, a Galway businessman beating off stiff opposition from two Dublin-based estate agents, a local accountant and a local solicitor, all of whom were acting on behalf of clients.
"This sale highlights the large number of investors in the sub €500,000 price bracket seeking out property as a "safe haven" for their cash in the light of the current low returns from deposits and the recent removal of the bank guarantee for deposits over €100,000.
"The Capital Gains Tax exemption on assets held for seven years and acquired before the end of this year is also driving this market," he said.
The other joint agent on the property was Stephen Gunne of Property Partners Laurence Gunne Dundalk and the property was sold on behalf of joint receivers Neil Bannon and Paul Doyle of Bannons.
It was initially offered for sale by private treaty but such was the interest from prospective investors that agents felt that an auction would prove the fairest and most transparent way to facilitate rival bidders.
A large attendance witnessed 40 bids being placed on the property.
The vendors solicitors were Eversheds.