A gilt-edged investment property that "ticks all the boxes," according to the selling agent, goes on the market today in Castlebar, Co Mayo, when the Bank of Ireland branch office is offered for sale with guarantees on the rental growth.

Agents TWM Select is inviting offers in excess of €3.23 million for the town centre building where the bank is in full occupation on a 25-year full repairing and insuring lease from May 2011, with no break options.

The current rent is €227,400 a year.

One of the key attractions is pre-agreed 15 per cent, five-yearly rental uplifts throughout the lease term with the next increase in May, 2016, due to bring the rent up to €261,510.

Refurbished

The building was completely refurbished and extended in 2011 to meet the bank’s needs and now provides 1,103 sq m (11,882 sq ft) of space along with 23 on-site car parking spaces.

A purchaser could also avail of some capital allowances available with the property.

Michele Jackson of TWM Select, who is handling the sale, said the investment had a range of features that would appeal to investors who are looking for a safe buy – a Bank of Ireland Grade A covenant with 22 years left to run on the lease and 15 per cent rental increases in what was a freehold, town centre property.

A selling price of €3.23 million would show a net initial return of 6.74 per cent, a reversionary yield of 7.75 per cent from May, 2016, and an equivalent yield of 8.35 per cent assuming that the standard purchasing costs of 4.46 per cent are applied.