Prime Dublin High Street Investment Offered For Sale
100-101 Grafton Street launched to market by CBRE
Dublin, May 2017 – In one of the most exciting investment sales of 2017, property advisors CBRE are delighted to launch of 100-101 Grafton Street & 4-5 Wicklow Street to the market for sale by Private Treaty, quoting €48 million, which equates to a net initial yield of 3.58%. This prime asset is located on Ireland’s premier retail high street, let to AIB Plc on a 20 year lease from 7 July 2010 producing an annual rent roll of €1,800,000. This sale presents a unique opportunity to benefit from a now recovering retail sector with renewed demand from retailers for quality retail accommodation. CBRE are instructed to dispose the asset on behalf of GLL Real Estate Partners, and anticipate a strong level of interest from Irish Institutions and European Investors.
100-101 Grafton Street has a prime position on Dublin’s premier retail street. The property is situated on the west side of Grafton Street and is immediately adjoined by River Island and Weirs Jewellers. Other well-known fashion and luxury brands in the immediate vicinity include Brown Thomas department store, Tommy Hilfiger and Marks & Spencer.
100-101 Grafton Street is an impressive five-storey over basement building occupying a prime pitch on Grafton Street. The building also has the benefit of profile to the pedestrianised section of Wicklow Street immediately opposite the recently refurbished Brown Thomas department store. The building is of period construction with feature red brick elevations to the upper floors, traditional timber frame sliding sash windows and feature stone façades at ground level.
Overall the property extends to approximately 1,677.7 sq. m (18,060 sq. ft.) with frontage onto Grafton Street of approximately 13 metres and a further 11 metres frontage on Wicklow Street. Internally, the ground floor of the building comprises the newly refurbished banking hall which incorporates ATM’S, Online and Telephone Banking Kiosks, lounge areas, cashiers desk and meeting rooms. The first floor has a mix of customer areas and internal meeting rooms and back office rooms. Within the Grafton Street side of the first floor there is a dedicated student banking area.
This sale presents a unique opportunity for an investor to benefit from a now recovering retail sector with renewed demand from retailers for Grafton Street assets. Footfall on Grafton Street is unrivalled by any other high street or shopping Centre in Ireland where the annual footfall last year was more than 53.5 million according to Dublin Town.
According to CBRE research the street has the most extensive provision of retail with 91 outlets, providing over 75,000 sq m of retail accommodation. 59% of these outlets are occupied by international retail tenants, whereas 41% are occupied by national retailers. Connectivity to Grafton Street is excellent and is continuously improving. The street has close links to all major modes of transport. The LUAS Green Line terminates at the top of Grafton Street, carrying over 14 million passengers per annum (38,000 per day). The Luas Cross City Project is due for completion by November 2017. This will provide new local stops at Trinity College and Dawson Street and link the south tram line, the LUAS Green Line with the north/west line, the LUAS Red Line.
We are anticipating strong demand from a wide cohort of investors in this asset. The ownership structure has evolved on Grafton Street over the last three years with Irish Institutions and European Investors keen to secure a presence on the street. This has been evidenced by the sale of the Sovereign Portfolio to Irish Life and more recently the Grafton Collection to Hines.
CBRE estimates there have been 12 transactions of Grafton Street assets accounting for approximately €253 million in the last three year period. 43% of the properties were acquired by Irish Institutions such as Irish Life and IPUT, whereas 37% were acquired by European/International Investors such as GLL and Hines. Today CBRE estimates that 60% of the retail buildings on Grafton Street are in the ownership of Pension Funds/Institutions while 40% are in the ownership of Private/Individuals and owner occupiers. The most prominent landlords on the street are Irish Life, Aviva, State Street, GLL and IPUT.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2016 revenue). The company has more than 75,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company, now employing over 132 employees and offering a full range of property services including property sales and acquisitions, leasing and management, investment, corporate services, debt advisory, project management, consultancy, business rates and compulsory purchase, valuations and research. Please visit our website at www.cbre.ie.