Monday 14 October 2019

Online auction raises €35.6m, 'showing confidence in outlook'

McKendrick Place in Letterkenny, part of a portfolio of commercial and residential property in Co Donegal that sold for €4.85m
McKendrick Place in Letterkenny, part of a portfolio of commercial and residential property in Co Donegal that sold for €4.85m
The property at 116 Ranelagh Road, Dublin 6
32 Lower Ormond Quay, Dublin
Donal Buckley

Donal Buckley

A portfolio of as many as 93 commercial and residential property in Letterkenny and Falcarragh, Co Donegal, sold for its combined guide price of €4.85m prior to the BidX1 auction on Tuesday.

The auctioneer raised more than €35.6m over three days of online auctions and 46pc of the revenue was generated by 34 commercial lots.

BidX1's Bernard Cully said this September's auctions were its most successful this year.

"The level of interest shows that, despite the economic and political uncertainty, investors are still confident about the outlook for Irish property market," he added.

Many of the properties in the Co Donegal lot are located close to each other at Upper Main Street, Pearse Road and at Academy Court in Letterkenny, the county capital. One of these, McKendrick Place, next to Pearse Road, is responsible for €107,000 in rental income and nine of its 11 retail and office units are tenanted with EBS among the occupants.

In all the Co Donegal lot generates annual rent of almost €306,100, although the auctioneer also points out that current passing annual rent totals €423,116. With vacant possession of 30 units, they have potential for a significant increase in rental income.

Next most valuable lot was an Applegreen service station on Main Street, Tullamore, Co Offaly, which sold for its €950,000 guide price. With a current annual rent of €95,000 plus VAT, it will generate a 10pc gross initial yield and the purchaser will recoup the price in gross terms from 10 years' rent.

Standing on a 0.11 hectare (0.27 acre) site, it comprises a forecourt, petrol pumps and retail unit which is let to Petrogas Group, a wholly owned subsidiary of Applegreen. Its lease will run until 2037 and, meanwhile, there is a rent review in 2022 and a break option in 2032.

A fish and chip shop formerly known as Luigi's at 116 Ranelagh Road, Dublin 6, sold prior to auction for €875,000. Its guide price had been reduced from the €1m-plus figure quoted earlier this year to €775,000 before this auction. Extending to 168.95 sqm, the vacant mid-terrace red- brick property also includes a two-bedroom apartment and a one-bedroom apartment.

A former nursing home at 94/95 Cappaghmore, Clondalkin, Dublin 22, sold for €800,000 or 23pc over its €650,000 guide price. Extending to 352.18 sqm, the two-storey property includes 12 bedrooms but it is considered to have significant development potential subject to planning permission. It is located in a housing estate just off Ninth Lock Road.

Development potential also appears to have boosted the price of a five-bedroom house on a 2.75 acre site near the rugby- playing King's Hospital School in Palmerstown, Dublin 20. It sold for €750,000, or €100,000 over its €650,000 guide price. Known as Avondale Lodge, Old Lucan Road, the detached house extends to 270 sqm.

In Dublin city centre, a three-storey over basement investment opportunity at 32 Ormond Quay sold for €704,000 or 56pc more than its €450,000 guide price. Extending to 3,378 sq ft, its ground floor is let to Camillia Nails and Spa at an annual rent of €24,867, while the other floors are vacant.

A pharmacy investment property in the heart of Waterford city sold for €590,000 after its guide price had been reduced from the €700,000 quoted earlier this year for a private treaty sale. This four-storey property is located at 29 Barronstrand Street and extends to 416 sqm. Its ground floor is let to Gallagher Pharmacy which has a 10-year lease from November 2011. The vacant upper floors, which have separate access, could accommodate about 200 sqm of offices or could be converted to residential use.

With an annual rent of €65,000, its price would equate to a gross initial yield of more around 11pc.

An investment with development potential at Turnings, near the K Club in Straffan, Co Kildare, sold for its €500,000 guide. Comprising a development site and outbuildings extending to 41.14 acres, it is occupied by an individual trading as Shannonside Foods and has a current annual rent reserved of €24,000. This equates to a gross yield of 4.8pc or a capital cost of less than €12,160 per acre.

On Dublin's northside, a vacant residential property in need of refurbishment at 185 North Circular sold for €616,000 or €66,000 over its €550,000 guide price. Located near Hanlon's Corner, it is convenient to Phibsborough, Stoneybatter and the burgeoning Technology University at Grangegorman.

The mid-terrace red-brick, three-storey house is currently sub-divided into seven vacant bedsits and extends to about 140 sqm.

A portfolio of properties at Market Court, Newcastle West, Co Limerick, sold for its €470,000 guide price.

Comprising two retail units, one office unit and three apartments, it generates €36,580 a year and one of the retail units is vacant.

An optician occupies the other retail unit, the office unit is occupied by Foroige and rent for its three apartments is paid through a pooled rental scheme.

In Limerick city centre, one of two adjoining retail units extending over ground floor and basement at Ormston House, Patrick Street, sold but its neighbour is still available. Located on the corner with Ellen Street, the vacant 11 Ormston House, extends to 2,239 sq ft and sold for €221,000 or €71,000 over its €150,000 guide price.

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