Attractive yields touted to entice regional buyers
Yields of between 10pc and 16pc are being touted to entice investors to buy four retail and industrial properties in three regional towns.
A pharmacy at the Auburn Retail Park in Athlone, which is generating a rent of €32,000 a year, has an asking price of around €300,000 which would generate a yield of more than 10pc.
Located opposite the Athlone Institute of Technology, its 25 year lease runs from 2002. The agents, Property Partners Earley, say they already have an offer of €250,000 for the property but are hoping to achieve a deal closer to the asking price.
A second Athlone property is a restaurant over looking the river Shannon at Custome Pier. It is currently generating a rent of €30,000 per annum on a lease which expires in 2030.
It has attracted an offer of €150,000 but the agents are asking €250,000 which would generate a yield of more than 12pc.
At Dunlo Street, Ballinasloe, Co Galway, a property where the vacant ground floor is let to a bookmakers at a rent of €45,000, extends to 790sqm.
John Earley believes that the offices on the upper floors could generate a further €25,000 a year.
This suggests that a yield of 10pc could justify a price of up to €700,000.
In Tuam, Co Galway, a property comprising five industrial units at the IDA business park is let to the IDA and producing an annual rent of €126,000.
It has attracted an offer of €500,000 but the agents are asking €800,000 which would still generate a yield of 15pc. The IDA's lease runs until 2023.
The properties are all part of a portfolio owned by a west of Ireland developer who is working with NAMA to pay down his loans.
John Earley says "We are open to all offers on these properties and welcome all enquiries. The tenants in all cases are not affected."