Galway city investment offers 8.96pc initial yield
Sarah Winters of agents TWM is seeking offers in excess of €925,000 for a semi-detached, two-storey over-basement, mixed-use investment building just 1.2km outside Galway City centre.
Located direcly opposite University College Hospital Galway, No. 32 Newcastle Road is fully occupied and currently producing a gross rental income of €86,600 per annum.
The property extends to approximately 340.5 sq m (3,665 sq ft) and provides commercial use at ground and basement levels with residential accommodation overhead. The commercial element of the building is occupied by 'Mixgreens' restaurant at ground and basement floor of approximately 171 sq m (1,837 sq ft) and a medical centre at ground floor, occupying 65.3 sq m (703 sq ft).
There are two residential units at first-floor level, each of which extends to approximately 60 sq m (650 sq ft). These are laid out to provide a kitchen, living room, bathroom and two bedrooms. Each residential unit is accessed separately at ground-floor level. Car parking for tenants is provided to the rear of the premises.
The property forms part of a commercial development along Newcastle Road that provides amenities for both University College Hospital Galway and the nearby National University of Ireland Galway (NUIG) campus. Located just 1.2km from Galway city centre, its adjoining occupiers include Tesco, Supermac's and Ulster Bank.
The commercial units are occupied with a WAULT of over 13 years producing an annual rent of €65,000, while both residential units are let subject to a gross rental income of €21,600 per annum.
The property's overall guide price of €925,000 reflects a net initial yield of 8.96pc (based on gross income and assuming standard purchase costs of 4.46pc).
Sarah Winters of TWM believes the combination of the long-term WAULT on the property's commercial element and historically-low deposit rates will encourage a significant level of interest from investors.