Tuesday 11 December 2018

Over €19m worth of properties for auction in December sales

Clear potential: 8 and 9 Grant’s Row, D2, has planning permission for five storeys of offices which could increase the space by 50pc to 1,007 sq m (10,839 sq ft)
Clear potential: 8 and 9 Grant’s Row, D2, has planning permission for five storeys of offices which could increase the space by 50pc to 1,007 sq m (10,839 sq ft)
Donal Buckley

Donal Buckley

Three estate agents with plans for public auctions in December have published catalogues with properties carrying a combined value of over €19m. The biggest of them is IAM Sold's Leinster catalogue with more than €10m worth of properties, followed by Sherry FitzGerald/Cushman & Wakefield's joint €7.8m catalogue and REA O'Connor Murphy's €1.35m catalogue.

The most valuable lot is a third-generation office building in Dublin's central business district which will be offered at the Sherry FitzGerald auction on December 4 at the Pavilion, Leopardstown, Dublin 18, where there will be 21 properties ranging in price from €30,000 to €3.25m.

The latter is a 495 sq m (5,328 sq ft) office building at 8 and 9 Grant's Row, Dublin 2, which had been for sale earlier in the year with a €4m price tag. It comes with 13 car spaces on a 0.13 acre site to which there is gated rear access from Grattan Street, which is located between Merrion Square and Grand Canal Dock.

It also has full planning permission for five storeys of offices which could increase the total office space by 50pc to around 1,007 sq m (10,839 sq ft) of net office space. The vendor is Purple Properties, representing private Irish investors.

Also in this catalogue is a 0.97 acre residential development site with full planning permission for 13 three-bedroom houses at Balrothery, Castletymon Road, Dublin 24. It has a €1.1m AMV - down €100,000 from a recent asking price. It is located 750 metres from the M50 motorway and close to the Junction 11 intersection with the Tallaght bypass.

On the eastern side of Cork city, an Ulster Bank branch at 95 Main Street, Midleton, has a €650,000 AMV. With a current annual rent of €150,000, this suggests a gross initial yield (GIY) of 23pc. Its 25-year lease runs from September 2005 and has a break option in September 2020 at the end of the 15th year. Extending to 540 sq m (5,800 sq ft) over three storeys, it benefits from car parking in an adjoining property.

On the western side of the city, a second Ulster Bank branch at Main Street, Ballincollig, Co Cork, has a €600,000 AMV. Extending to 571 sq m (6,150 sq ft) with dual frontage onto Main Street and Station Road, its current passing rent is €305,000 per annum, but its lease will expire next April.

More than €10m worth of properties, some with yields of up to 14pc will be offered at IAM Sold's Leinster public auction on December 5 at The Clayton Hotel, Liffey Valley, Dublin.

Its most valuable lot is a portfolio of commercial investment properties in Drogheda, Co Louth, with a reserve of €1.05m. Alternatively it might be sold in two lots. Lot 1 offers units 11a and 11b North Quay, at a €330,000 reserve. They are leased to two individual tenants at combined rent of around €40,000 a year.

Lot 2 combines units 13, 14, 15a, 16 and 17 at a reserve of €720,000. No 14 is leased at €26,762 a year and Nos 15a, 16 and 17 are leased to an office centre at €42,000 a year. A self-contained office suite overhead at No 13 is currently vacant.

Agent Property Partners John Little says that the current combined rent of €108,762 from both lots would generate a GIY of 10.35pc, and if fully let it could generate up to €140,000.

The properties overlook the River Boyne and Scotch Hall shopping centre.

In Dublin 7, a retail unit at 43-45 Bolton St, has a €950,000 guide price and with a current rent of €76,000, this suggests a GIY of 8pc. It is occupied by a Spar convenience store which is located on the ground floor of an apartment block at the corner of Bolton Street and Henrietta Street. The unit extends to 269 sq m (2,895 sq ft) over ground floor and basement with the latter accommodating office and storage. Spar's lease runs until 2041 and a rent review is due in 2021. The rent was previously at €95,000 but a reduction was agreed in 2014. Castle Estate Agents say it may be possible to get a rent increase.

A development site with planning permission for 43 houses at Killenard, Co Laois is being offered for auction with expectations that it could achieve a price of more than €950,000. The site extends to 9.43 acres and has the benefit of easy access to the M7 motorway.

A mixed use, investment property in a neighbourhood shopping centre, 15-18 Dun Emer, Lusk, in North Dublin has a €500,000 reserve. With annual rent of €72,000, this suggests a 14.4pc GIY. The units are let to two tenants: a Centra supermarket on the ground floor and Lusk Fitness gym on the first floor. It occupies a high-profile site on the junction of the Dun Emer development with Chapel Farm and Kilhedge Lane.

A vacant Pre-63 property at 60 Crumlin Road, Crumlin, Dublin, has a €349,000 price tag - a drop of €21,000 on its previously-quoted price. Simon Madigan of Young's Estate Agents reckons that it has potential to achieve about €37,000 in annual rents suggesting a GIY of 10.6pc. The house is divided into two one-bedroom apartments, while a garage to the rear may have potential to be developed into a residential unit.

On December 12, REA O'Connor Murphy will host a Munster and Connacht auction at The Limerick Strand Hotel which will have 16 predominantly residential properties in locations as dispersed as Cork City and Donegal and with combined AMVs totalling more than €1.35m. Among them are two vacant adjoining houses off Bleasby Street, on the northside of Cork City between The Neptune Stadium and the N20 Cork Limerick Road.

Number 2 Bleasby Terrace is a three-bedroom mid-terrace house extending to 62 sq m (667 sq ft) and it has a €61,000 AMV. While its neighbour Number 1 is smaller, as a two-bedroom house extending to 47 sq m (505 sq ft), it has a €71,000 AMV. It is described by the agent as being in good condition, while its neighbour is said to need some work.

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