Tuesday 15 October 2019

South Dublin investment at €1.9m promises 7.03pc net initial yield

Nos 1 and 3 Rockville
Nos 1 and 3 Rockville
Ronald Quinlan

Ronald Quinlan

Agent QRE Real Estate Advisers is guiding a price of €1.9m for a substantial mixed-use investment near Blackrock, in south county Dublin.

Located just off Newtownpark Avenue, the property at Nos 1 and 3 Rockville comprises a mix of retail and residential accommodation.

The ground-floor retail unit is let to Triode Newhill Limited trading as Spar on a 25-year lease from 2015 at an annual rent of €70,000 per annum. The lease provides for a break option in year 10 and the next rent review falls in 2020, at which point the selling agent believes there will be scope for rental growth.

In addition to these factors, the lease benefits from a guarantee from BWG, underpinning the attractiveness of the asset.

The first and part-second floors of the building contain a substantial 12-bed apartment with shared living and dining accommodation. Interestingly, this element of the property has been let on a single lease to a corporate tenant, Keywords International Limited, from August 2018 at an annual rent of €75,000 per annum, thus providing a total rental income of €145,000 per annum and a net initial yield of 7.03pc allowing for standard purchaser's costs of 8.46pc.

Bryan Garry of QRE says: "Given the strength of covenant, reversionary potential and alternative uses, we anticipate strong pension investor demand."

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