Thursday 27 October 2016

River Portfolio on the block guiding €21.5m

Published 07/04/2016 | 02:30

Tetrarch Capital is seeking €21.5m for a series of properties known as the River Portfolio. The portfolio, which is being marketed by QRE, formed part of the Ulysses Portfolio which Tetrarch bought from Bank of Scotland (Ireland) in 2013.

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The River Portfolio consists of 29 properties located in central Dublin and is generating a current rental income of €1.8m per annum. The majority of properties are concentrated around Dublin 1, 2, with the remainder located in Dublin 7 and 8. The entire comprises a total floor area of approximately 7,432 sq m (80,000 sq ft), which is over 90pc let.

More than four fifths of the income is weighted towards retail tenants, with the remaining income coming from an office block known as The Tannery, on Cork Street in Dublin 8 and a licenced premises trading as the Panti Bar, located on Capel Street in Dublin 1.

According to the agents, the highlight of the portfolio includes 17 retail units located on Lower Liffey Street and Bachelors Walk in Dublin 1. Occupiers include a mix of established retail operators, including Spar, Butlers Chocolates, Nourish Health Foods, Games Workshop, Decobake, La Terra and Bach 16.

The portfolio also includes a Lidl supermarket extending to 1850 sq m on Cork Street and two retail units in Chapelizod Village let on long term leases to Spar and a pharmacy operator. Spar are also tenants within a retail unit in the Tramyard development in Inchicore.

QRE said other notable occupiers within the portfolio include the Department of Justice and An Taisce.

Tetrarch Capital managing director Michael McElligott commented: "The sale of the River Portfolio is part of our continuing strategy to unlock value from our 2013 acquisition of the Ulysses portfolio. We are confident this mixed use portfolio will attract strong interest from both domestic and international buyers."

QRE confirmed that the portfolio was for sale collectively as a single lot at an asking price of €21.5m, which represents a net initial yield of 8..2pc to the purchaser, once standard purchaser's costs of 4.46pc have been deducted.

The agency added that it would listen to offers for individual lots but Tetrarch favours a single portfolio transaction.

Conor Whelan of QRE is managing the sale with colleague Bryan Garry.

Mr Whelan commented: "The recovery is now being experienced throughout the retail industry and in our opinion increasing confidence amongst retailers will continue to drive rents.

"With rental values continuing to accelerate upwards, investments of this nature are an attractive proposition and we expect average net initial yields for retail investments to compress in the short term," he said.

The River Portfolio sale will be closely watched as the retail market is in the midst of a strong post-crash recovery.

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