Irish investor sells London assets and snaps up Brasserie Sixty6 premises for €2.6m
The premises of the popular Brasserie Sixty6 restaurant located at 66/67 South Great George's Street in Dublin's city centre has been sold for a reported €2.6m by QRE. The price achieved reflects a keen net initial yield of 7.18pc.
The property is arranged over ground and basement levels to provide a substantial restaurant, providing 220 covers and extends to 456 sq m (4,911 sq ft).
The tenant, Home RBVR Limited, which trades as Brasserie Sixty6, occupies the building under two coterminous 35-year leases dating from July 30, 1996, at a contracted rent of €195,000 per annum.
It is understood that the purchaser is a private Irish investor who was seeking to rationalise their portfolio in London with a view to concentrating on Dublin.
Bryan Garry of QRE Real Estate Advisors advised the vendor, who is also a private individual.
Commenting on the transaction, Garry said: "We have witnessed an increased demand for similar leisure investments throughout Dublin city centre as investors seek relief from yield compression in the office and high street retail sectors."
With leisure investments tending to offer higher yields due to perceptions surrounding covenant strength, Garry added that he expects yields in the sector to compress further in line with an increase in consumer spending.
Asked where the demand for similar leisure investments was being derived from currently, he said that domestic buyers were focused typically on opportunities within the €1m to €5m price range, while overseas investors were showing interest in properties priced in excess of €5m.
Prior to being sold by QRE, 66/67 South Great George's Street had been offered for sale by another agent.
Notwithstanding the apparent, initial lack of interest in the property, the Irish Independent understands there were three active bidders involved before it was sold for €2.6m.