Tuesday 24 April 2018

Summer peaks with €32m in property up for auction

AIB's branch premises in Thurles, Co. Tipperary, is guiding between €1.95m and €2.05m
AIB's branch premises in Thurles, Co. Tipperary, is guiding between €1.95m and €2.05m
The Lodge Hotel in Geesala, Co. Mayo, is being offered at €500,000
25-27 Middle Gardiner Street in Dublin is guiding at €1.25m.

Donal Buckley

Summer auction activity will peak during the seven days between July 21 and 27 next when three auctioneers will offer almost 200 lots at three separate bumper auctions.

The largest of them will see Allsop offer 111 lots online with €20.5m in combined guide prices. Commercial assets with €13.8m in guide prices will account for 41 lots in this catalogue.

O'Donnellan and Joyce's auction on July 21 will contain 74 lots with a total value of €10.5m at its public auction in Galway City.

Sherry FitzGerald are also hosting a public auction on July 26 at Leopardstown Racecourse, Dublin 18, with 11 lots: five commercial, six residential and with guide prices totalling almost €1.3m.

Two provincial bank branch investments that failed to sell in 2014 are back in an Allsop auction at reduced prices. Meanwhile, a Mayo hotel is back with a doubling of its price.

The top price at the Allsop auction is for the AIB bank branch investment property at 14 Liberty Square, Thurles, Co. Tipperary, which has a €1.95m to €2.05m guide price range. It was previously offered for sale at an Allsop auction in 2014 with a guide price ranging from €2.15m to €2.3m, which suggested a yield of 9.66pc at that time but it failed to sell.

The 1,027 sq m (11,063 sq ft) corner property generates a current rent of €215,000 a year. With a price reduction of about €225,000, this suggests an increased gross yield of up to 10.75pc.

The lease expires in 2029, although there is a break in 2024. A three-storey premises, the property also benefits from 13 car parking spaces to the rear.

Another bank branch let to AIB at 7 Frances St, Kilrush, Co. Clare, which also failed to sell in 2014, is also back for auction at a reduced guide price of €765,000. Its rent of €77,500 suggests a gross yield of 10.13pc. In 2014 its guide price was in the €775,000 to €825,000 range. The 390 sq m (4,197 sq ft) red-brick, detached building also benefits from a rear yard with direct access.

A Mayo hotel has come back to the market at around double the price it sold for at an Allsop auction three years ago. In 2014 the hotel, then known as Abhann Mhor Lodge Hotel, Geesala, Ballina, was bought by the Talbot Hotel group for €230,000. Now the Talbot family, whose best known hotels are the Stillorgan Park in Dublin and The Talbot in Wexford, have asked Allsop to sell the hotel now known as The Lodge for €500,000. A three-star going concern, it has 31 bedrooms and extends to over 2,787 sq m (30,000 sq ft). Talbots also own The Talbot Lodge in nearby Belmullet.

One of Ireland's most active property investment groups, Tetrarch Capital, is availing of the auction to sell 25-27 Middle Gardiner Street, Dublin 1, a modern office building with a €1.25m guide price. Let to the HSE on a new lease extending to 2027, it generates €112,500 a year in rent, suggesting a yield of 9pc.

It was originally part of the Liam Carroll Ulysses Portfolio that was bought by Tetrarch with the support of PIMCO in 2013. Headed by Michael McElligott, Tetrarch has been selling on a number of Ulysses and hotel properties since it acquired them during the crash.

The Middle Gardiner St offices are effectively three interconnecting Georgian-fronted buildings that have a combined 686.44 sq m (7,389 sq ft) and are situated to the eastern side of the street near the junction with Mountjoy Place. There is a landscaped courtyard and car parking to the rear.

A corner mixed-use investment at 27 and 27A Belvedere Road, Dublin 1, has a €750,000 guide price. It generates €72,000 in annual rent from a single tenant, Swipe Property Ltd, suggesting a gross yield of 9.6pc. Extending to 279 sq m (3,002 sq. ft), the property comprises a take-away unit, a retail unit and four apartments. Its lease, which expires in 2021, requires 3pc fixed annual rental increases.

In West Wicklow, Blocks 1 and 2, Blessington Business Park, Blessington, have a €700,000 guide price. Arranged in two detached blocks with a combined 2,866 sq m (30,849 sq ft) of total floor area, they sit on a self-contained, two-acre site. The units are laid out as five warehouses and six offices. Five of the units generate €34,590 in rent while six units are vacant.

A portfolio of 35 apartments at 19-53 Moate Retirement Village, Moate, Co. Westmeath are being offered for sale with a €670,000 guide price. While most of them are vacant, 10 units are let and generating the equivalent to €47,280 a year in rent. Arranged within a single block, the sale includes associated common areas and residents' lounge.

O'Donnellan and Joyce's auction includes properties in each of the Connacht counties as well as in Cavan, Clare and Limerick. They include three pubs in Headford, Gort and Ballina ranging in price from €75,000 to €200,000.

An interesting feature is the offer of pairs of adjoining residential properties from as little as €45,000 for each house. Such pairs could appeal to investors or families seeking an alternative to a granny flat.

Sherry FitzGerald's auction includes six Leinster properties, two in Connacht, one in Ulster and two in Munster. The most valuable of these is Unit 1-4, Monread Industrial Estate, Naas, Co. Kildare, which has a €360,000 guide price. This lot comprises a group of four incubator units in an L-shaped single-storey block currently let and producing €26,640 per annum. This suggests a gross yield of 7.4pc. Three of the units extend to 95 sq m (1,022 sq ft) and one to 94 sq m (1,011 sq ft).

The now derelict former Tramore Hotel in the seaside town of Tramore, Co Waterford, is for sale with a €100,000 guide. It sits on a .35 acre elevated site with views over Tramore Bay as well as frontage to Strand St.

Indo Business

Business Newsletter

Read the leading stories from the world of Business.

Also in Business