Bank of Ireland branch in Balbriggan at €6.65m a safe bet for investors

Agent Savills is seeking offers in excess of €6.65 million for the freehold interest of the Bank of Ireland’s branch premises at Balbriggan in north Dublin.

Located at 24/26 Dublin Street, the property comprises a 7,286sq ft modern retail building, which is let to the bank on two separate leases from April 2008 and July 2009 respectively, with a weighted average unexpired lease term of 14.53 years. The investment is producing a total passing rent of €432,456 per annum.

Both leases are reviewed on an upward-only basis and benefit from the higher of either open market rent or 15 per cent fixed uplifts. Based on the guide price of €6.65 million, the asset is currently producing a net initial yield of 6 per cent. This rises to 7.92 per cent once the fixed uplifts take effect.

Redeveloped on a phased basis between 2007 and 2008, the property occupies a high-profile position on Balbriggan’s main thoroughfare.

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The building’s front-of-house section consists of a retail banking area with canteen, office and ancillary accommodation to the rear of the building. The property is finished to a high standard and has the benefit of 31 on-site car parking spaces.

Balbriggan is one of Dublin’s busiest and fastest growing satellite communities. According to the 2016 census, it is the youngest town in Ireland with the fourth highest growth rate of larger conurbations in Ireland. It has seen population growth of 94 per cent over the past 25 years (compared to a national average of 35 per cent over the same period).

Darragh Doyle of Savills says: “At the guide price, the net initial yield is 6 per cent which will rise to 7.92 per cent following the fixed uplifts. At these levels the opportunity looks very attractive and is sure to appeal to investors seeking secure long-term income from an ‘AAA’ covenant.”