The combination of immediate rental income, strong tenant covenant and a long unexpired lease term of 10 years saw strong interest in the sale of the Dún Laoghaire branch of Bank of Ireland.
Having been offered to the market by agent Lisney at a guide price of €1.925 million, the distinctive 19th century red sandstone building at 101/102 Upper George’s Street has been acquired by a private Irish investor for €2.5 million. The disposal of the property followed a highly competitive process involving more than 50 enquiries and 25 viewings from interested parties.
The sale itself was carried out by private treaty with eight parties actively bidding on the property. While the €2.5 million paid for the building represents a premium of 30 per cent on the figure sought by Thomas Byrne and Peter Stapleton of Lisney, the new owner stands to secure a 4.98 per cent net initial yield on their investment.
101-102 Upper George’s Street is let to Bank of Ireland on a 25-year lease from 2006. Prior to launching the property for sale, Lisney agreed a re-gear of the lease with Bank of Ireland which involved removing the 2023 tenant-break option while reducing the passing rent to €137,000 per annum.
The subject property, which dates from 1890, comprises a three-storey over basement mixed-use commercial building extending to 582sq m (6,270sq ft). The ground floor is in use by Bank of Ireland as a retail bank branch with a banking hall, a cashier’s counter, cellular offices, store room and a strong room. The basement comprises staff facilities, a security cash room/vault, storage and a cellular office. The internal fitout of the bank has been upgraded in recent years and the bank premises are in excellent condition throughout.
Upper floors
The upper floors comprise office accommodation and are accessed internally by staircase. The layout provides for cellular offices, meeting rooms, a canteen and ladies and gents toilets. The building has a car park to the rear providing parking for 11 cars.
Commenting on the sale, Thomas Byrne of Lisney said: “This property attracted strong interest from mainly private purchasers with cash reserves given the attractive remaining lease term of 10 years and a fixed rent for this term. Following the sale, a number of unsuccessful bidders are seeking similar opportunities.”
