Big slice of Dublin's trendiest neighbourhood hits market
A swathe of prime properties located just off Dublin's Grafton Street acquired by developer Bernard McNamara during the boom have gone on the market with a guide price of excess €27m.
Consisting of 18 commercial units and 12 retail units, the 'Madrid' portfolio is being offered for sale in one to three lots by agents Knight Frank, on the instruction of real estate advisors Duff & Phelps and Nama.
Mr McNamara purchased the properties, which are dispersed across South William Street, Chatham Row, Coppinger Row, Clarendon Street and Balfe Street, with a view to creating a new retail and residential quarter to the west of Grafton Street.
The onset of the financial crisis in 2007 however, effectively holed his ambitious plans below the waterline.
Knight Frank are marketing the portfolio as offering "investors a unique opportunity to acquire a footprint in one of Dublin's most sought after areas with potential for active management and future development to drive value".
Briefly, the properties are being sold in three lots, with the third lot consisting of the portfolio in its entirety.
Lot one consists of numbers 43, 49, 52, 53, 55, 57 South William St, 1 Chatham Row, 1 Coppinger Row, 41, 42 & 42A, 43 & 44 Clarendon Street and the rear of 53 South William Street.
Lot two consists of Unit 1, Westbury Mall, 6/7 and 8/9 Balfe Street and 14A & 14B Balfe Street.
While the selling agents have not provided a breakdown of the pricing beyond the €27m they are seeking for the overall portfolio, a source familiar with the matter indicated that Lot one would be expected to garner in the region of €20m to €21m in the event that it is sold on its own, while Lot two would be expected to secure between €6m and €7m.
The portfolio has 26 tenants and delivers approximately 7,131 sq m of commercial accommodation and 716.4 sq m of residential accommodation.
A number of well-known names are included within its tenant base such as Toni & Guy, Sugar Cubed, Metro Café, Clarendon Medical, the Dublin Business School, The South William Bar and Coppinger Row restaurant.
The commercial units are 93pc occupied generating approximately €1.2m in rent and 11 of the 12 residential units are currently inhabited, producing approximately €200,000 per annum.
The current combined rent roll of €1.4m per annum equates to just €196.32 per sq m (€18.24 per sq ft) giving an incoming purchaser scope to substantially drive retail growth off a low rental base. As it stands, the portfolio delivers a weighted average unexpired lease term (WAULT) of approximately 4.55 years.
The excess of €27m guide price provides for a capital value of €3,786 per sq m (€352 per sq ft).
The reinvigoration of Grafton Street has seen a significant increase in activity on surrounding streets such as Chatham Street, South King Street, South William Street, Wicklow Street, and Clarendon Street.
Dublin Town Footfall Data shows city centre visitor numbers increased 2.6pc from January 2014 to December 2015. A further breakdown shows South William Street recorded the highest footfall increase for the period at 26.9pc.