Phibsborough Road investment offers 8.15pc initial yield
INVESTORS looking for a foothold within the immediate environs of Dublin’s Phibsborough Shopping Centre prior to its proposed €50m redevelopment may be interested in No 89 Phibsborough Road.
Agents Knight Frank are seeking €700,000 for the property, which comprises three ground floor retail,/ professional services units and four first -floor residential units.
Based on that price and its current combined rental income of €61,905 per annum, the prospective purchaser can expect to secure a net initial yield of 8.15pc after standard acquisition costs.
There is immediate potential to increase the rent roll through active asset management.
The property is located on the corner of Phibsborough Road and Connaught Street.
The commercial space extends to 141 sq m (1,518 sq ft), with units ranging from 28 sq m (301 sq ft) to 80 sq m (861 sq ft) while the residential portion extends to 120 sq m (1,292 sq ft) with a typical unit size of 30 sq m (323 sq ft).
The tenants at No 89 include the firm of Justin Hughes Solicitors, The Chop Shop and Kate’s Atelier.
These tenants are paying a combined rent of €42,225 per annum, with the remaining rent coming from three residential tenants on the first floor, with one residential unit held vacant for the purpose of the sale.
The property is situated opposite Tesco Metro and experiences high levels of daily pedestrian footfall.
Surrounding retail brands in the area include McDonald’s, Eddie Rockets, Camile Thai, Four Star Pizza, Hickey’s Pharmacy and EuroGiants. The Mater Hospital and Temple Street Children’s University Hospital are located approximately 1km from the subject property, with Dalymount Park, Bohemian FC’s football stadium, located approximately 350m away.
In a further indication of the property’s potential, MM Capital lodged a planning application earlier this year for a €50m redevelopment of Phibsborough Shopping Centre, including construction on part of the grounds of Dalymount Park.
Should the scheme secure planning approval, it would see a three-fold increase in the quantum of retail space and the construction of apartments for 340 students in blocks ranging in height up to seven storeys.