Thursday 25 May 2017

Yields could top 14pc at bumper auction

DONAL BUCKLEY

Commercial properties will account for 17 of the 100 lots which Allsop Space will auction on March 1.

These include six retail units, three industrial units, two office suites, a former pub, a restaurant, three mixed-use buildings and The Sandhouse Hotel, Rossnowlagh, Co Donegal.

The highest yield suggested by the catalogue is for an office suite at 34 Usher's Quay, Dublin 8. Its guide price is €70,000 and with a rent of €18,000 this would generate a yield of 25.7pc.

The most expensive of the mixed-use investment properties is 22/23 Upper Ormond Quay, Dublin 7, which is priced at €610,000.

It comprises a commercial unit let to Word Perfect Translations and seven apartments which together are generating €85,800 a year in rent with further potential from a vacant apartment. On the basis of the current rent the yield is estimated at 14.1pc.

Another mixed use investment property, 276-278 Harold's Cross Road, Dublin 6, comprises six apartments which are let and two ground floor commercial units which are vacant. Rent from the apartments amount to €75,600. At the guide price of €595,000 these would generate a yield of 12.7pc. When the two units are let the buyer could increase the yield substantially.

In Clifden, Co Galway, a yield of 22.7pc is possible if a ground-floor office unit in the Pobal Building, on the Low Road, sells for the €220,000 guide price. It is generating a rent of €50,000.

Also in Clifden, a parade of 12 freehold industrial units which did not sell at last November's auction are back with a much lower reserve of €210,000. In November the guide price was €290,000 and even though the bidding reached €277,500, it was withdrawn.

In the meantime while five units remain vacant, rental income from the other seven units has increased to €32,175 per annum which would generate a yield of 15.3pc.

A yield of 19.3pc is suggested by the €120,000 guide price for a 126sqm office suite at The Capel Building, Mary's Abbey, Dublin 7, a building which has proved popular with the legal profession because of its proximity to the nearby Four Courts. This suite is generating a €23,108 a year from two tenancies.

In Bray, Co Wicklow a pub known as Kavanagh's Bar is for sale with vacant possession at a €110,000 guide price.

A converted church building in Duleek, Co Meath, formerly The Spire restaurant, is up for sale for €60,000.

Also going under the hammer are nine land holdings including a 189sqm site in Dublin city centre for €20,000, and a 39-acre quarry in Co Limerick for €525,000.

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