Saturday 23 June 2018

Prime retail property on Dublin's Wicklow Street guiding €2.4m

No 16 Wicklow St has a strong tenant covenant
No 16 Wicklow St has a strong tenant covenant
Ronald Quinlan

Ronald Quinlan

Agent Lisney is guiding a price of €2.4m for No 16 Wicklow Street, a prime retail investment property at the heart of Dublin city centre's thriving retail district.

The property, which will be offered for sale by public auction, is a four-storey over basement, mid-terrace building extending to a net internal area of 240 sq m (2,580 sq ft) with retail use at ground floor, storage at basement level, and office accommodation across the upper floors with independent street access.

The entire property is leased to General Health Food Store (Dublin) Limited, trading as Nourish, under a 35-year full repairing and insuring (FRI) lease from July 1993 (10.4 years unexpired).

The contracted rent for the property is €125,000 per annum, which Lisney consider 'rack rented' at present. The lease allows for two further upward-only rent reviews in March 2021 and March 2026.

The tenant, unaffected by this sale, has traded from No 16 Wicklow Street since 2004 and has its head office based on the upper floors of the property. The tenant company has been operational for over 33 years and opened its eighth store in Dublin in October 2017.

Lisney is quoting a guide price of €2.4m for the property which reflects a net initial yield of 4.80pc after standard acquisition costs.

A number of recent sales reflect the high levels of demand for properties on Wicklow Street.

No 26 Wicklow Street sold in the final quarter of 2017 for just over €2m. Based on that price and the property's annual rental income of €112,000 (over rented with lease expiry in Jan 2018), the purchaser is expected to secure a net initial yield of 5.13pc.

No 19 Wicklow Street, meanwhile, sold in the first quarter of last year for a similar sum. Based on its €2m-plus sale price and the property's annual rental income of €103,100, the purchaser can expect to secure a net initial yield of 4.66pc.

Christopher Belton of Lisney expects No 16 Wicklow Street to interest Irish and international investors alike.

This, he says, is due to the property's prime city centre location, strong tenant covenant, long unexpired lease term of 10.4 years, and the favourable full repairing lease with upward-only rent reviews.

Sunday Independent

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