€39m in property on offer at three online auctions
The former Páidí Óg's public house in Mulhuddart, Dublin 15, which was offered for sale by the Mercantile Group last year, is to go for auction again next month at a reduced price.
It is one of more than 230 properties with combined values of around €39m that will be offered for sale at three online auctions in the next three weeks. They include as many as seven former public house premises, a number of multi-unit portfolios, as well as a range of other investment, commercial and residential properties.
Allsop plans to split its online auctions into two days with 144 residential lots on offer on May 17, and 75 commercial lots on May 18. Development lands will be included in both sales.
The most valuable lot of the period will be offered at I-Am Sold's Leinster online auction on May 11, when Latouka Apartments, an entire block of 18 units at Ballyowen Lane, Lucan, Co. Dublin, will be offered for sale with a €3m guide price.
They comprise ten one-bedroom apartments, seven two-bedroom apartments and one three-bedroom unit, all of which are let and generating €240,000 per annum. This suggests a gross initial yield of 8pc. Agent Lorraine Mulligan of RE/MAX says they have the potential to generate €270,000 per annum considering current market rents.
In the Allsop auction on May 18, the former Páidí Óg's public house in Mulhuddart has had its guide price reduced to €475,000-€500,000, down from around €650,000 last September, when it failed to sell. Located on a one-acre site at the corner of Navan Road and Church Road, the former pub itself extends to 1,575 sq m (16,852 sq ft). Developers may be attracted by its zoning as a local centre and high amenity, suggesting that it has potential for a range of uses.
The most valuable lot at Allsop's commercial auction is an investment property, Catherham House, Looneys Cross, Bishopstown, in a middle-class suburb on the western side of Cork City. Generating €88,300 in annual rent, its €1m to €1.1m guide suggests a gross yield of 8.4pc. Boylesports bookmakers occupy the ground floor on a lease that has about 14 years to run. In addition there are two apartments overhead in the 236 sq m (2,544 sq ft) premises.
Auctioneer Richard O'Neill says that "yields for regional retail properties with good covenants have compressed over the last 12 months, reflecting increased investor demand".
He cites examples of two Limerick properties which sold at recent auctions for higher than expected prices, one of them a bookies at a 7.3pc net initial yield and the other a suburban pharmacy with an 8.1pc net initial yield.
"Yields have dropped by between 150 and 200 basis points from around 10pc to less than 8pc in some cases," adds O'Neill.
A shopping centre in Co. Meath is being offered for sale with a €900,000-€950,000 guide price. Extending to 1,103 sq m (11,874 sq ft), Athlumney Centre, Bailis, Navan, comprises nine retail units and the mainly single-storey property also offers development potential as its site benefits from 150 parking spaces.
Three of the units have €70,000 in annual rent reserved and their tenants include Ladbrokes, a pizza takeaway and a Chinese takeaway. The other units, which include a two-storey pub, are vacant.
Two shops in Talbot Street may present an opportunity to benefit from the uplift which the street might see from the forthcoming Luas stop on adjoining Marlborough Street.
The more valuable of these is 76 Talbot Street, Dublin 1, which has a €730,000-€740,000 guide price. A three-storey over basement premises, it extends to 581 sq m (6,254 sq ft) and generates €81,000 in annual rent, which suggests a gross initial yield of 11pc.
Its ground floor is occupied by a Euro Saver discount store with a lease that expires in 2019, while the first and second floors are let as offices to Phoenix Sales & Marketing Limited with a lease expiring in 2025. The property is situated to the northern side of Talbot Street, towards the cross roads with James Joyce Street.
Three takeaways are also being offered as investment properties and the most valuable of them is 2 Upper Drumcondra Road, Dublin 9, which has a €370,000-€380,000 guide price. Extending to 104.9 sq m (1,129 sq ft), this end-of-terrace mixed-use investment trades as Peters and generates €37,000 a year in rent, suggesting a gross yield of less than 10pc.
Its accommodation also includes residential space at ground and first-floor level.
In Dublin 15, the single-storey Chef In Thai and Chinese Takeaway at Unit 5 Sweeney Mews, Ongar Retail Village, is on a contractual rent of €26,000 per annum. With a €225,000-€245,000 guide price, this suggests a gross yield of more than 11pc.
In Kinnegad, Co. Westmeath, The Golden Phoenix Chinese restaurant on Main Street generates €26,400 in rent, and with a €200,000 to €220,000 guide price suggests a 12.6pc gross yield.
In Allsop's residential online auction of May 17, a number of multi-unit portfolios will be on offer. One of these comprises 10 apartments at Kellys Court, Kellys Row, Dublin 1, which has seen its guide price reduced to between €1.3m and €1.4m. It comprises five one-bedroom units and five two-bedroom apartments, which are fully let and generating an annual rent of €136,200. Ranging in size from 42 sq m (452 sq ft) they include a duplex unit extending to 72 sq m (775 sq ft) and generating €16,200 a year, and a 71 sq m (764 sq ft) penthouse generating €15,000 a year.
Early last year another agent offered the same 10 units for private treaty sale with a €1.5m guide when the rent was only €126,000 a year, suggesting a gross yield of 8.4pc. Now the combination of reduced guide price and increased rents suggests a gross initial yield of 10.09pc.
In September 2015 Allsop sold 10 other apartments in Kellys Court after auction for around €1m. They then generated a €119,400 rent roll, suggesting a gross yield of about 11.9pc. Kellys Court is located to the rear of Temple Street Hospital close to where a number of student accommodation units are currently being built.