Agent CBRE is guiding a price of €2.4 million for the Castle petrol station on Kilmore Road, Artane, Dublin 5.
Located to the front of Butterly Business Park, the subject property and surrounding area experience a high volume of traffic owing to their close proximity to Dublin Airport and the M50 motorway.
Recently refurbished, the property extends to 250sq m (2,691sq ft) and comprises a forecourt and canopy, four double-sided petrol pump terminals as well as a car and jet wash. This is complemented by the inclusion of a Centra store offering a general retail area, delicatessen, customer seating and toilet facilities, and a staff area to the rear.
The service station is let to Cedarglade Ltd, trading as Centra on a 25-year lease with a break option in year 10. The covenant is strengthened through the support of Musgrave Ltd as a parent guarantor.
Rent reviews
The property is currently producing a total passing rent of €165,000 per annum in years 1-5, with five-yearly open-market rent reviews. Based on the current rental income, the guide price of €2.4 million equates to a net initial yield of 6.25 per cent.
Stevie Grehan of CBRE’s capital markets division says: “In a market where the formation of new franchise partnerships with food companies has become a standard feature, the Castle petrol station presents an excellent opportunity for an investor to acquire 10 years of secure income with the benefit of a grade A covenant.”
