Sales of €27m follow recent Budget boost
The Budget has helped increase the level of commercial property investment activity and some deals are expected to complete in the near future.
Since the Budget was announced, a pub in Howth has sold at areasonable discount to its €1m asking price while a cluster of shops in Camden St, Dublin 2, sold for around €770,000. However all recent deals were agreed before the Budget and it did not affect the prices.
Because receiver Paul McCann of Grant Thornton insisted on selling the four adjoining buildings at 34-37 Camden St in one lot, two buyers joined forces. One of them has an interest in one of the properties. Together they have a combined 8,638sq ft of accommodation. The ground floor of 35 and 36 is let to Cahills Pharmacy (Camden St) Ltd with 27 years remaining in the lease at an annual rent of €60,000 representing a net initial yield of around 7.2pc. The other two buildings are vacant and in need of extensive repair.
Agent Jacqueline Fitzpatrick of Savills reported "good interest in this property due to its prime location, particularly from domestic cash buyers, willing to inject capital into redeveloping the premises, and we have requirements for similar city centre assets from a number of underbidders."
The Howth pub, The Pier House, has been bought by Howth local Simon O'Connell from receiver Niall Coveney of Ernst & Young whose agent is John Hughes of CB Richard Ellis. Mr O'Connell is expected to undertake a refurbishment of the two-storey premises before reopening it in the new year.
Meanwhile NAMA's €25m. plus deal to sell One Warrington Place, Dublin 2, is also believed to have completed after the Budget.
In addition agents Knight Frank report that a number of parties submitted best bids for the Riverside 2 Building being sold by Bank of Scotland/Lloyds which has a €35m guide. Interested parties were instructed to delay bids until after the Budget which would offer a clearer market perspective.