CBRE Ireland bring Royal London ‘Sovereign Portfolio’ to the market guiding €118 million
Dublin 5th May 2015 – In one of the most exciting property investment sales of 2015 to-date, property advisors CBRE are to offer an exceptional portfolio of prime retail and suburban office buildings located in Dublin and Cork for sale, by Private Treaty. The sale, on behalf of The Royal London Asset Management (RLAM), includes 8 retail assets located on Grafton Street, Henry Street, Dawson Street, O’Connell Street, Dublin and Patrick Street Cork. In addition there will also be five office buildings located on Merrion Row Dublin 2, Blanchardstown Corporate Park, Liffey Valley Office Park, Ballast House and Eastgate Business Park, Cork. The portfolio produces a total rent roll of approximately €7,409,570 per annum and provides an investor with a unique opportunity to gain a substantial foothold on Dublin and Corks premier retail thoroughfares as well as presenting an investor with an opportunity to exploit asset management potential in a strongly recovering office market.
The portfolio offers a combination of long and short income offering a strong rental income stream with asset management potential. This sale presents a unique opportunity to benefit from a now recovering retail sector and renewed demand from retailers for quality retail accommodation. In addition, the portfolio is ideally positioned to benefit from the strong recovery in the Dublin and Cork suburban office markets. With a total area of approximately 26,488 sq m (285,117 sq ft) the sale offers investors an opportunity to acquire a prestigious portfolio of core plus retail assets which will appeal to existing international and domestic investors as well as new entrants. The guide price for the entire portfolio is €118 million although investors will also be able to bid for the retail and office portfolio separately, The Retail assets account for approximately 61% of the portfolio with the offices accounting for 39%.
“CBRE are anticipating keen interest in this portfolio. In 2014 the overall investment spend was €4.58 billion of which the retail investment spend accounted for 23% of market, a significant increase from the previous year. The retail market, at least at the prime end, is now where the office market was in the recovery cycle at the beginning of 2013. This portfolio offers a unique opportunity to benefit from this recovery, as well as a strongly performing office sector.”
The portfolio includes: 7-11 Grafton Street, 85-86 Grafton Street, 56-58 Dawson Street, 6-7 Dawson Street, 51-52 Henry Street, 43-44 O’Connell Street, 5 GPO Buildings Henry Street, 11 Patrick Street Cork, Building 4 Eastgate Business Park, Ballast House Westmoreland Street, Block 1 Blanchardstown Corporate Park and Block B Liffey Valley Office Campus.
The Retail Portfolio shall comprise 7-11 Grafton Street, 85-86 Grafton Street, 56-58 Dawson Street, 6-7 Dawson Street, 51-52 Henry Street, No. 43-44 O’Connell Street, No. 5 GPO Buildings Henry Street, No. 11 Patrick Street Cork
7-11 Grafton Street comprises four terraced retail buildings extending to approximately 2,634 sq m (28,354 sq ft) in total. The buildings rest on a site extending to 0.09 Ha (0.24 acres) and benefits from excellent frontage of 12.7 m overlooking onto Grafton Street. The building is multi-tenanted and let to three retailers which include, McDonalds Restaurant of Ireland Limited, Office Holdings Limited and The Body Shop all of whom are provided with their own door access. There is a separate entrance to the upper floors which are in use as office accommodation and let to the Language Institute. The property is let to four tenants producing a total income of €1,820,000 per annum. 97% of the income generated is attributed to the retail tenants.
85-86 Grafton Street comprises a four storey over basement multi-tenanted building let to C& J Clark International Limited, Pamela Scott and two office occupiers. The building extends to 1,118 sq m (12,036 sq ft) in total and occupies a prominent retail position on the west side of Grafton Street benefiting from 7.09 metres of frontage. The building is laid out to provide retail accommodation at ground, first and basement level. In addition, there are two floors of offices overhead accessible by way of a separate entrance. The property is let to four tenants producing a total income of €702,948 per annum. 94% of the income generated is attributed to the retail tenants.
56-58 Dawson Street is an attractive period building with a façade featuring ornate mouldings and dormer windows. The property comprises a four storey over basement building extending to approximately 2,587 sq m (27,854 sq ft) in total. The building is occupied by Waterstones Ireland Limited in its entirety who are contracted to pay an annual rent of €505,688 per annum, whose lease has expired.
The building itself is laid out to provide retail accommodation at ground and first floor level with overhead ancillary and storage space on the second, third floor and basement level which enjoys a frontage of 18.55 metres onto the east side of Dawson Street.
6-7 Dawson Street comprise two terraced buildings extending to approximately 1,739 sq m (18,720 sq ft) in total and benefits from a frontage of 13.67 m overlooking Dawson Street. The entire is laid out to provide two self-contained retail units let to Optica and Tower Records. There is a separate entrance to the upper floor accommodation which is confined to office use and occupied by long term tenants who include: Motivation Weight Management and Dr Simon Collins. The property is let to four tenants producing a total income of €324,050 per annum. 78% of the income generated is attributed to the retail tenants.
51-52 Henry Street comprise two adjoining four storey buildings situated on the North side of Henry Street, strategically positioned opposite Debenhams and Arnott’s Department Stores and within metres of Jervis Shopping Centre and Ilac Shopping Centre. When combined both buildings extend to 625 sq m (6,730 sq ft) in total and rest on a corner site. The properties are let to Vodafone and Telefonica Ireland Limited, which has been sublet to Brown Thomas & Co. t/a Mac @BT2, subject to an annual rent of €502,000 per annum.
43-44 O’Connell Street comprises of a five storey over basement end of terrace dual fronted building situated on the south side of O’Connell Street which extends to 786 sq m (8,470 sq ft) in total. C& J Clarks Limited occupies a unit extending to 398 sq m (4,239 sq ft) comprising ground, first and basement accommodation. There is additional office accommodation overhead at the second and third floor level accessible via a separate entrance on Abbey Street, which is currently unoccupied. Clarks are contracted to pay a rent of €250,000 per annum.
11 Patrick Street Cork is a two storey building extending to approximately 206 sq m (2,222 sq ft) in total. The building occupies a high profile position on the east side of Patrick Street between Debenhams and Merchants Quay Shopping Centre and benefits from a 10 metres frontage onto Patrick Street. The property was previously occupied by O2, who vacated the property in December 2014. The property is currently available to let, subject to a rent of €125,000 per annum.
5 GPO Buildings Henry Street occupies a high profile location close to the junction with Henry Street. The building comprises a ground floor retail unit extending to approximately 164 sq m (1,774 sq ft) in total and benefits from 6.17 metres of frontage onto Henry Street. The building is leased to 02 Communications Ireland Limited in its entirety and is laid out to provide ground floor retail accommodation with storage accommodation located in the basement and mezzanine level. 02 are contracted to pay an annual rent of €410,000 per annum. Adjoining occupiers are Hickeys Pharmacy, Korky’s Shoes, Pull & Bear and Mango.
The Office portfolio shall comprise Block B Liffey Valley Office Campus, Ballast House on Westmoreland Street, No. 2-4 Merrion Row, Block One Blanchardstown Corporate Park and Building 4 Easgate Business Park.
2-4 Merrion Row, Dublin 2 is located in one of the most desirable locations in south Dublin, just east of St. Stephens Green and located close to the intersection of Merrion Row and Ely Place. The property comprises a five storey over basement unit which extends to 1826 sq m (19,657 sq ft) in total. The ground floor is in retail use and is let to Eight to Twelve Limited t/a Spar. There are three floors of offices overhead which are currently vacant and accessed by way of a separate entrance which extend to approximately 1037 sq m (11,166 sq ft). The property currently produces an annual rent of €247,750 per annum.
Ballast House, Westmoreland Street comprises a high profile, five storey mixed use building extending to 2721 sq m (29,291 sq ft) in total. The building occupies a high profile location at the junction of Westmoreland Street and Aston Quay, in the heart of the city centre next to O’Connell Bridge. On the ground floor the property is let to three separate retail occupiers including Londis, Carroll’s Irish Gifts and Book-Value. In addition, there are three floors of offices overhead which are currently vacant and extend to 16,644 sq ft. The property currently produces an annual rent of €823,500 per annum.
Block B Liffey Valley Office Campus occupies one of the highest profile positions in Dublin at the junction of the M50 and the N4 which provides it with a dual carriageway link all the way to the city centre. The Westlink Bridge provides fast access to Dublin Airport. The property comprises a five storey multi-tenanted office building which extends to 5774 sq m (62,551 sq ft) in total. The property is let four tenants including CJ Fallon, Janseen Cilag and AMO Ireland which produce a total annual rent of €1,135,345 per annum.
Block One Blanchardstown Corporate Park was built in 1996. Block One it is situated at the entrance to the park on the Western side of the Blanchardstown Road and north Ballycoolin Road approximately 12km (7.5 miles) northwest of Dublin City Centre. The property comprises a five storey over basement office building which extends to 4,254 sq m (45,798 sq ft) in total and produces a total annual rent of €301,000 per annum.
Building 4 Eastgate Business Park situated on the northern side of Eastgate Road within Eastgate Business Park in Little Island, Cork. Eastgate Business Park extends to approximately 120 acres and comprises a mix of retail, office and industrial units. Occupiers within the park include Laya Healthcare, Pepsi, DPS Engineering, Food Safety Promotion Board and ESB International. Building 4 comprises a two storey, purpose built, detached building constructed in 2008 which extends to 1990 sq m (21,422 sq ft) in total. The building is let to Raychem International limited subject to annual rent of €389,145 per annum.
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.
In Ireland, with offices in Dublin and Belfast, CBRE is the country’s largest commercial real estate services company, now employing over 165 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 or www.cbre.ie/ni.