Tuesday 15 October 2019

Two Waterford opportunities for investors

Premises: Gallaghers Pharmacy on Waterford’s Barronstrand Street
Premises: Gallaghers Pharmacy on Waterford’s Barronstrand Street
Donal Buckley

Donal Buckley

Two Waterford city centre investment properties have come to the market, which could suit small- and medium-sized investors.

The more valuable of the two is 29 Barronstrand Street, a busy pedestrianised street.

It currently generates annual rent of €65,000 from Gallaghers Pharmacy, which has a 10-year lease from November 2011 on the ground floor and basement.

This entire premises extends to 416 sq m and comes with vacant first, second and third floors, which have separate access and could accommodate 202 sq m of offices.

Sales agent John Rohan of Sherry FitzGerald is quoting €700,000, which suggests a gross initial yield of almost 9.29 pc. He says that the upper floors may also qualify for inner city living incentives, enabling conversion to apartments for which there is strong demand.

"They could generate rents of €900 to €1,000 per month per unit," he adds.

Meanwhile nearby 40 Merchants Quay is a 186 sq m property let to Sheehans Steak & Seafood Restaurant, which currently operates on the ground and first floor, with two floors of overhead accommodation currently used as storage.

The restaurant's lease of four years and nine months commenced in March 2019 at an annual rent of €15,000, with five-year rent reviews. The building is a protected structure.

As well as nearby car parks, neighbouring occupiers include Centra, Dooleys Hotel, Citizens Information, the Granary café, Waterford Institute of Technology Department of Architecture and a local newspaper office.

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