A private Irish investor looks set to secure a net initial yield of 4.98 per cent following their acquisition for €5.69 million of a prime Georgian building and mews in Dublin’s core political and business district.
Number 47 Merrion Square and its associated mews at 47 Stephen’s Place are occupied in their entirety by NewsWhip Media Ltd under two coterminous leases, with 3.7 years unexpired. In annual rent 47 Merrion Square produces €229,850, while 47 Stephen’s Place is generating €81,580 per annum, giving the new owner an overall rental income of €311,430. With an average rent of €36.50 per sq ft across the two buildings, and prime Georgians currently commanding in the order of €50 per sq ft, investors were attracted by the subject properties’ medium to longer-term reversionary potential.
The properties comprise a four-storey over-basement Georgian building with mews and car parking to the rear. The main building, 47 Merrion Square extends to 6,330sq ft, which is considerably larger than the area’s typical Georgian Buildings of 4,200sq ft. The subject property retains numerous original period features with cornicing, sash windows and shutters, ornate fireplaces and ceiling roses throughout. The two-storey modern mews extends to 2,191sq ft and is accessed via Stephens Place.
Positioned on the east side of Merrion Square, the properties are within a short walk of St Stephen’s Green, Fitzwilliam Square and Grafton Street. The immediate area has been enhanced by the completion of the ESB’s new headquarters at 28 Fitzwilliam on Fitzwilliam Street and the The Press Up Group’s recent opening of Thomas Rody Maher’s bar on the corner of Fitzwilliam Street and Baggot Street Lower.
Colin O’Shea, who handled the sale on behalf of Colliers, said: “The strong capital value of €668 per sq ft and net initial yield of 4.98 per cent reflects the level of interest from both domestic and international investors.”
Colliers are now handling the sale for €6.5 million of 12 and 13 Fitzwilliam Place together with the mews buildings at 12 and 13 Lad Lane.
The property at 12 Fitzwilliam Place is occupied in its entirety by law firm Reddy Charlton LLP under a new 10-year lease from January 1st, 2021 at an annual rent of €168,000 per annum, with a tenant break option at expiry of the fifth year. Reddy Charlton also occupy the basement of number 13 on a separate lease that runs co-terminus with number 12 at an annual rent of €12,000 per annum. Number 12 Lad Lane is let to Irish property company Iput on a short-term lease that expires in September 2022 at a rent of €32,500 per annum.
Number 13 Fitzwilliam Place is partly let with excellent potential to significantly increase the rental income. The building is in office use from its basement to second floor with a three-bedroom apartment on the third floor. Enright Construction and Fuels for Ireland occupy the hall floor and part of the second floor on short-term letting agreements. The total passing rent is €43,794 per annum. Number 13 Lad Lane is let to Iput until December 2023 at a rent of €30,000 per annum.
