Investor buys AIB Rathgar for €3.4m
A private Irish investor has paid €3.4m for the AIB bank branch building and site in the heart of Rathgar Village, Dublin 6.
With AIB paying a passing rent of €275,100 a year, this will yield the purchaser a 7.75pc return with potential to rise to in excess of 8pc if the rear site is developed.
The building extends to 883sqm (9,500 sq ft) and was extensively renovated and extended in 2005 prior to the original sale and lease back in 2007.
The lease has about 14 years to run and provides for five yearly upwards-only rent reviews. The bank has a break option at the end of year 15.
David Carroll of Bannon, who acted for the purchaser, says the investment offers steady rental income as well as the prospect for a small scale residential development to the rear.