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€10.5m for Westin freehold interests

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The Westin Hotel in Dublin

The Westin Hotel in Dublin

The Westin Hotel in Dublin

The freehold interest on two properties in teh centre of Dublin is to be out on the market with an asking price of as much as €10.5m.

The two 800-year ground leases cover the Westin Hotel and adjoining AIB branch on Westmoreland Street in Dublin 2.

The leases, which date from August 2001, are currently producing a rent of €554,876 per annum.

The leases provide for upwards only reviews every five years linked to the rent set for the bank premises.

The ground lease is held by College Green Hotel Ltd an investment vehicle controlled by US billionaire John Malone who bought the hotel in July for €65m.

The ground lease sale is relatively unusual in the Irish commercial market. Traditionally however the leases tend to be popular as they are backed by the buildings on the site.

The yield on the lease is believed to be about 5.56pc.

Mr Malone has been a major investor in the Irish hotel market ion recent years, as he has capitalised on the crash and the depressed prices of so many of the nation's top hotels.

The biggest private landowner in the United States, Mr Malone has taken on the Trinity Arch Hotel on Pearse Street, renaming it the Trinity City Hotel as well as the Hilton Hotel at Charlemont Place.

He is the head of cable giant Liberty Media, and counts the 32,000 sq ft Humewood Castle in Co Wicklow among his other Irish interests.

Market insiders see Mr Malone as an obvious contender for the freehold interests of the two properties.

Indo Business