Sum­mer peaks with €32m in prop­erty up for auc­tion

Irish Independent - Business Week - - COMMERCIAL PROPERTY - 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) red­brick, 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.

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

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