Three commercial buildings on Dublin’s Grafton Street, whose tenants include Bewley’s, Lush UK, Permanent TSB and City Break Apartments, are going up for sale for €29m.
The properties in the main commercial street of the capital contribute a total of 2.45 million euros in rent each year.
Savills will bring numbers 70, 78/79 and 116 to market on behalf of the joint trustees, Michael McAteer and Nicholas O’Dwyer of Grant Thornton, along with two other premier office buildings in Dublin: Connaught House and Kingram House.
Ronan Group Real Estate, of developer Johnny Ronan, faces the possibility that the five properties will be sold and the proceeds will be used to pay off M&G Investments, which is owed €141m for its support of the refinancing of Nama loans by RGRE in 2015.
Together, the properties have a combined price tag of €170 million.
Savills said each asset will have its own separate sale process, with the exception of the three Grafton Street buildings, which will be offered as a collection in one or more lots.
Fergus O’Farrell, chief investment officer at Savills, said the properties “offer unique opportunities, including secure income returns and asset management prospects, in a market lacking well-placed, high-profile assets.”
“Therefore, we expect strong investor demand from a variety of buyer types,” he added.
78-79 Grafton Street, one of the most prominent landmark buildings on the street, is home to Bewley’s
The ground and basement of 116 Grafton Street is leased to Lush
Savills said the buildings on Grafton Street boast a combined 25.5 meters of street frontage, along with more than 29,000 square feet of interior space, with a total price tag of €29 million.
70 Grafton Street, which is leased to Permanent TSB and City Break Apartments, currently produces an income of €669,000 a year with just under 16 years remaining on the lease.
78-79 Grafton Street, one of the most prominent landmark buildings on the street, is home to Bewley’s, which currently pays rent of approximately €1.46 million a year.
This lease expires in August, “providing investors with a unique opportunity to consider various asset management initiatives,” according to Savills.
The ground floor and basement of 116 Grafton Street is rented to Lush on a 25-year lease until September 2025 at an annual rent of €285,000, while the two-bedroom apartment on the top floor currently yields €28,800. € per year.
Also launched is Connaught House in the heart of Dublin 4
Also to be launched is Connaught House in the heart of Dublin 4 on Burlington Road, comprising approximately 117,000 square feet of Grade A office space over five floors, with a price tag of €125 million.
The building has multiple tenants, including Macquarie Aviation Capital, Carlyle and Biohaven Pharmaceuticals, and currently generates an annual revenue of just over €7 million, with an average rent per square foot of €57.50.
The fifth building to be launched on the market is Kingram House, a single-rental office located in the center of Fitzwilliam Place at Dublin 2, with a reference price of €16 million.
The 15,850-square-foot building has a distinctive design with a Georgian office to the front and a large modern four-story office block to the rear.
It is leased to the Irish Medical Council on a 20 year lease from January 2013 and currently produces a rental income of €827,500 per annum.