Mixed-use in Galway on the block with a €4m guide
Published 14/05/2015 | 02:30
Savills and O'Donnellan & Joyce have launched the sale of what the two firms are describing as "a prominent mixed use block" adjacent to University College Galway and NUIG in Galway city centre.
The block is being put on the market with an asking price of some €4m.
Paul Callanan of Savills and Colm O'Donnellan of O'Donnellan & Joyce are handling the transaction on a joint agency basis.
The property is currently producing an income of approximately €413,000 per annum, which equates to an income yield of 9.88pc after standard purchaser's costs.
The property extends to approximately 1,480.79 sq m (15,938 sq ft) providing retail accommodation at ground, office space at first floor level and four apartments overhead. There is a basement which incorporates 36 car spaces.
Bank of Ireland are the primary tenant in this scheme and their rent of €343,300 accounts for 84pc of the passing rent with an estimated seven and a half years left on its lease. The lender has sub-let their accommodation to Tesco. The apartments are fully let and the office accommodation is currently vacant which provides an incoming purchaser with the opportunity to increase returns. There is also additional mast income of €11,000 per annum being generated.
Paul Callanan of Savills commented that "given the strength of covenant associated with the current income profile and excellent asset management opportunities we anticipate a strong level of interest in this property".
Colm O'Donnellan of O'Donnellan & Joyce commented that "this is a gilt edged commercial and residential investment opportunity which will appeal to a wide range of investors given the attractive return on offer".
This is the latest property to go on the market in galway, where real estate prices have improved somewhat in recent months.
O'Donnelan & Joyce in particular have held a number of auctions of property in the Galway and Mayo region which have been well received.