A private Irish investor has paid €1.5m, the guide price, for two commercial investment properties with residential development prospects in Stillorgan, Co Dublin.
Located in a high-profile position at the junction of Merville Road and St Brigid’s Church Road, they overlook the N11 dual carriageway and are directly opposite St John of God Hospital in Stillorgan.
Lot one is 1 Merville Road, a vacant two-storey detached office building extending to 226 sq metres (2,423 sq ft.) GIA. It is situated on a self-contained site of about 0.14 acres with direct access off St Brigid’s Church Road.
The site is suitable for residential development subject to planning permission. It had a €650,000 guide price.
Lot two is 2-20 Merville Road, comprising five interconnected, two storey terraced office units which extend to about 922 sq metres (9,939 sq ft) GIA. It is let under two 20-year licence agreements to HR Holfeld (Engineering) Ltd from March 2010 at a combined rent of €85,956 per annum, which provides circa 9.5 years term certain income.
The agents were guiding €850,000 for this investment, which reflects a net initial yield (NIY) of 9.2pc after standard purchasers’ costs.
Both lots were sold on BidX1’s private treaty platform with joint agents QRE Real Estate Advisers, who pointed out that the residential zoning offered an opportunity to develop the site into a residential scheme, subject to planning permission.
Meanwhile the office itself could be let on a short-term basis.