Port­fo­lio of 17 banks for sale at €28.5 mil­lion

The Pak Banker - - FRONT PAGE - DUBLIN -AFP

The Lay­den Group is to em­bark on a ma­jor re­vamp of its com­mer­cial prop­erty hold­ings by sell­ing 17 Bank of Ire­land branches in the Dublin sub­urbs and prov­inces.

Joint agents Mur­phy Mul­hall and Cush­man & Wake­field are guid­ing €28.5 mil­lion for the port­fo­lio, which will show a blended net yield of 7.4 per cent - con­sid­er­ably more than was of­fered in re­cent sales of in­di­vid­ual bank branches.

Lay­den's re­vised in­vest­ment strat­egy was prompted by a de­sire to re­place most of its "dry" in­vest­ments such as the bank branches with com­mer­cial prop­er­ties that have fur­ther de­vel­op­ment po­ten­tial. Just months be­fore the prop­erty crash in 2007, Lay­den pur­chased 29 bank branches for €75 mil­lion. It sub­se­quently sold off 12 of them.

The 17 build­ings go­ing for sale pro­duce a com­bined rental in­come of €2.29 mil­lion, with all but two of the leases (White­hall in the north Dublin sub­urbs and 94 O'Con­nell Street in Lim­er­ick) pro­vid­ing for up­wards-only re­views on 25-year leases un­til 2032.

The White­hall build­ing will be of­fered for let­ting shortly, and the Lim­er­ick premises are be­ing fit­ted out for use by New Ire­land As­sur­ance Com­pany, part of the Bank of Ire­land group. Though there is a clear pref­er­ence by the sell­ing agents to off­load the port­fo­lio in a sin­gle lot just as it was pur­chased, they are will­ing to di­vide it into sev­eral lots to fa­cil­i­tate early sales.

With all the leases ex­cept White­hall and Lim­er­ick hav­ing more than 14 years to run, the agents ex­pect strong in­ter­est from Ir­ish and over­seas pen­sion and in­vest­ment funds be­cause of the bank's ex­cel­lent rep­u­ta­tion and the at­trac­tive lot sizes.

The high­est-value Bank of Ire­land branch go­ing for sale is lo­cated in Mal­low, Co Cork, where the in­vest­ment is val­ued at €3,220,274, the rent is fixed at €270,685, and the net yield at 8 per cent. The next-high­est value of €2,490,331 re­lates to the branch in Bal­lina, Co Mayo, where the rent of €216,080 also pro­vides an 8 per cent re­turn.

The sell­ing agents have put a val­u­a­tion of €2,142,017 on the Bal­lyfer­mot branch in north Dublin, where the rent of €145,2002 is ex­pected to show a yield of 6.25 per cent. The Loughrea branch in Co Gal­way has a slightly lower val­u­a­tion of €2,083,450, and here again the rent of €169,479 will show a net re­turn of 7.75 per cent.

At the low­est end of the value scale, the Bank of Ire­land branch in Eden­derry, Co Of­faly has an ask­ing price of €754,466; with the rent al­ready fixed at €61,372, the net yield will work out at 7.5 per cent. The bank branch in Athy, Co Kil­dare is also on of­fer at less than €1 mil­lion - €915,902 to be be pre­cise, with a rent roll of €79,471 and a net re­turn of 8 per cent.

The other branches go­ing for sale are in Ardee, Co Louth (€1.395 mil­lion); Ark­low, Co Wick­low (€1.762 mil­lion); Ra­heny (€1.444 mil­lion) and Sk­er­ries (€1.087 mil­lion), Co Dublin; Fer­moy, Co Cork (€1.231 mil­lion); Long­ford (€1.642 mil­lion); Roscom­mon (€1.646 mil­lion); En­nis­cor­thy, Co Wex­ford (€1.525 mil­lion); and Ro­screa, Co Tip­per­ary (€1.236 mil­lion).

The Lay­den Group is headed by Joe Lay­den. Its di­rec­tors are Lay­den's daugh­ters Gwen, Siob­han and Anita and his son Jack. The com­pany has in­vested more than €22 mil­lion since the crash on in­vest­ment prop­er­ties in the Dublin area, in­clud­ing Grafton Street, Clonskeagh and Bal­ly­mount. There are fur­ther plans to re­bal­ance the port­fo­lio in the com­ing months.

The com­pany's most no­table Dublin in­ter­ests in­clude George's Ar­cade be­tween South Great George's Street and Drury Street, which has been ea­gerly sought by sev­eral funds in­ter­ested in de­vel­op­ing it as an ex­clu­sive food mar­ket.

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.