Friday 18 October 2019

Retails of the city - Portfolio goes on market for €11.75m

32 Liffey Street
32 Liffey Street
Ellie Donnelly

Ellie Donnelly

A portfolio of Dublin retail premises, with potential to convert some of the property into residential units, is going on the market for a guide price of €11.75m.

Dubbed the Liffey Portfolio, it consists of eight commercial properties in Dublin's inner city, and the suburbs of Rathmines, Ranelagh and Blackrock. The units, which extend to approximately 1,857 sq m, are being sold in bulk.

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However, the vendor would consider selling the buildings individually.

Currently, the portfolio generates a combined rent of €487,500 per year.

This has the potential to increase to €850,000 through the leasing of properties that are currently vacant, as well as upcoming rent reviews, offering the purchasers a potential gross income yield of 7.23pc.

The Liffey Portfolio is being brought to the market by Stephen McCarthy of Savills.

Among the properties on the block are numbers 23, 31, 34 and 35 Liffey Street Upper, and 32 and 34 at Liffey Street Lower in Dublin 1.

The retail units of 23 Liffey Street Upper, as well as 32 and 34 Liffey Street Lower are currently vacant. Meanwhile, 31 Liffey Street Upper commands a rent of €80,000 per year, with units 34-35 on the same street generating a rental income of €120,000 annually.

Also for sale is a vacant two-storey restaurant premises at 27 Ranelagh, as well as two mixed-use investments located at 232 Rathmines Road, Dublin 6.

The building in Rathmines is located next door to Starbucks at the Swan Shopping Centre.

The ground-floor portion was recently let to charity group Oxfam for a term of 20 years at an initial rent of €77,500 per year, with a pre-agreed fixed increase to €85,000 effective from 2022.

A change of use from commercial to residential on the first floors of the premises in Ranelagh and Rathmines would add further diversity to the overall use mix and income profile, according to Savills.

Meanwhile, further out of the city, 23 Rockhill, Blackrock, County Dublin is also included in the portfolio. Subject to planning being granted, an additional two floors of office accommodation could be added to 23 Rockhill, the property agent said.

Other tenants within the portfolio include Permanent TSB, Scout Association of Ireland and the Blackrock Cellar off-licence.

Mr McCarthy, Savills head of general retail agency, said: "The portfolio offers investors a rare opportunity to acquire a diversified mix of prime city centre and south Dublin commercial properties with immediate potential to significantly enhance the current rental income stream, in tandem with short and medium term asset management/development initiatives."

Each of the properties in the portfolio is held freehold.

Irish Independent

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