Saturday 7 December 2019

Deal agreed for Tetrarch Capital's River Portfolio

Contracts have been signed for the River Portfolio for close to €21.5m
Contracts have been signed for the River Portfolio for close to €21.5m

Peter Flanagan

An Irish investor has agreed terms to buy The River Portfolio of central Dublin properties from Tetrarch Capital in a deal worth close to €21.5m. While the deal has yet to close, the Irish Independent understands contracts have been exchanged for the portfolio.

The River Portfolio consists of 29 properties located in central Dublin and is generating a current rental income of €1.8m per annum.

The majority of properties are concentrated around Dublin 1, 2, with the remainder located in Dublin 7 and 8. The entire comprises a total floor area of approximately 7,432 sq m (80,000 sq ft), which is over 90pc let.

Bryan Garry of QRE acted for Tetrarch Capital.

The buyer is believed to be a high net worth individual.

More than four fifths of the income is weighted towards retail tenants, with the remaining income coming from an office block known as The Tannery, on Cork Street in Dublin 8 and a licenced premises trading as the Panti Bar, located on Capel Street in Dublin 1.

According to the agents, the highlight of the portfolio includes 17 retail units located on Lower Liffey Street and Bachelors Walk in Dublin 1. Occupiers include a mix of established retail operators, including Spar, Butlers Chocolates, Nourish Health Foods, Games Workshop, Decobake, La Terra and Bach 16.

The portfolio also includes a Lidl supermarket extending to 1850 sq m on Cork Street and two retail units in Chapelizod Village let on long term leases to Spar and a pharmacy operator. Spar are also tenants within a retail unit in the Tramyard development in Inchicore.

QRE said other notable occupiers within the portfolio include the Department of Justice and An Taisce.

The portfolio was available in individual lots if required, but it appears the entire portfolio has changed hands as a single lot.

The asking price of €21.5m, which represents a net initial yield of 8.2pc to the purchaser, once standard purchaser's costs of 4.46pc have been deducted.

Tetrarch took control of the properties when it bought the Ulysses Portfolio from Bank of Scotland (Ireland) in 2013.

The company, which is headed by Michael McElligot, has bought extensively in the years since the property crash and has spun out a separate hospitality unit to handle its growing hotel portfolio.

Tetrarch Hospitality, led by Damien Gaffney, is initially manage its hotels and hostels at Mount Juliet, Citywest Hotel, The Dawson Hotel, Killashee House Hotel, Mount Wolseley, Clonmel Park Hotel and Jacob's Inn.

The firm is planning further investments in the sector.

A spokesman for Tetrarch Capital declined to comment on the sale.

QRE could not be reached for comment.

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