Monday 26 June 2017

Properties worth €38m set for latest Allsop auction

The Killerig Hotel in Carlow is among the properties set for the latest Allsop auction
The Killerig Hotel in Carlow is among the properties set for the latest Allsop auction

Donal Buckley

As many as 110 commercial properties with combined guide prices totalling €32 million

They will be auctioned by Allsop in the RDS, Dublin on 24 April. That auction will take place two days after the firm's next residential auction which will feature 220 lots at combined reserve prices in the region of a further €38m.

The commercial auction will include seven lots priced at over million euro as well as two modern but vacant hotels in the €730,000 to €340,000 price range.

The most valuable of all the commercial lots is a Connolly Court block in Cavan town which is generating a total rent roll of €395,575 from four healthcare tenants and has a reserve range of between €2.6m and €3.1m. Its rent roll could be further enhanced as four of its six retail units are vacant. The other two are let to Specsavers and the Sam McCauley Pharmacy chain. A primary care facility occupies the three upper floors, most of which is let to the HSE.

A portfolio of 16 retail units and three kiosks with a total floor area of 2,415 sq. m. at the Claregate St, shopping centre in Kildare Town Centre, has a €1.7m to €1.9m price tag. Kildare County Council and Specsavers are among its 14 tenants who pay a combined rent roll of €220,000 a year. Four of the retail units are vacant suggesting that it may have further rental potential.

In Swords, Co. Dublin, three properties will be auctioned with guide prices ranging from €800,000 to €1.3m. The most valuable of the Swords lots is Burgundy House, a three storey building with five ground floor retail units, a first floor restaurant, and offices on first and second floors which together are generating €89,000 in rent. This lot has a €1.1m to €1.3m price range.

At Cooldriona Court, Dublin Road, Swords, a block with four retail units and six offices which are generating €164,000 in rent is guiding between €900,000 and €1.1m. One of the units is let to Grafton Recruitment.

At 59 Main St, Swords a block with four office and four retail units, generating a combined rent roll of €101,000, is being offered for between €800,000 and €1m.

In Dublin 18 a two storey semi, 8a Sandyford Business Centre, is generating €75,000 from one of its two office units and has a €1.1m to €1.25m reserve range.

In Galway City, a mixed use investment building extending to 880 sq. m, at 72 Seamus Quirke Road, Westside, has a reserve range of €1m to €1.35m. It is currently producing a rent roll of €109,127 a year from the ground and first floor while the second floor is in shell and core condition. Its main tenant is Paddy Power, which pays a rent of €36,600 per annum for 10 years from September 2014. The other tenants are Fine Wines and Cancer Care West.

A further four properties let to Paddy Power are also for sale in four separate lots. These range in price from around €185,000 for the bookie shop on Sundrive Road, Crumlin, Dublin, which has an €18,000 annual rent up. The priciest of the Power shops is the unit in New Ross, Co. Wexford, which generates €60,000 in annual rent, has 11 years to run on its lease and a reserve price range of €425,000 to €475,000. The other two bookie shops are in Ballybrack, Co. Dublin and Cashel, Co. Tipperary.

Of two vacant hotels, the largest is Killerig Hotel, near Tullow, Co. Carlow, a four star, 42 bedroom hotel extending to 5,700 sq. m. which comes with a leisure centre, gym and swimming pool. Its guide range is €700,000 - €800,000. When receiver Aiden Murphy of Horwath Bastow Charleton offered this for sale in 2011, reports suggested that it might fetch €2.5m.

Overlooking the sandy beaches of Redbarn in Youghal, Co. Cork, a three star Quality Hotel which accommodates 25 bedrooms, conference, banqueting facilities and a leisure centre has a reserve range of €340,000 - €360,000. That's about €100,000 less than the price sought six months ago.

Two of the more valuable development plays include an industrial site on the Naas Road, Dublin, details of which were not finalised before we went to press. The second is Williamsons Mall, in Dundalk, Co. Louth, which is currently generating €152,000 a year from 20 of its 24 retail units. The property has a reserve range of €670,000 - €730,000.

In 2010, the Monahan family's Monarch Properties secured planning permission for a mixed use development on this 1.64 acre site which links Francis St to the busy Marshes Shopping Centre. The permission, which was recently extended until 2019, would allow 12 retail units, three café/bars, a hot food take-away, an off-licence, an amusement arcade, 17,053 sq m of offices, 46 apartments and car parking spaces.

Other properties for auction include a number which are let to high street brands such as a Tesco Express unit in Baylough on the west side Athlone town which is let on a 25 year lease from September 2007 at a rent of €50,000 a year. Its reserve range is €515,000 to €535,000.

Richard O'Neill, head of commercial auctions at Allsop, said this month's commercial catalogue is the firm's highest value Irish commercial auction to date.

The ending of the CGT tax incentive in December did nothing to dent the interest in its auction in February this year. "It will be interesting to note if the level of buoyancy shown in our February 2015 auction has been maintained into the spring. This auction also marks the first commercial auction to be completely separately catalogued to the residential auction. The move has been brought about by both overwhelming demand from both buyers and sellers."

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