Former megastore bought for €9m

An overseas investor has exchanged contracts to buy three shops, including a SuperValu store, and a fitness centre overlooking

O’Connell Bridge in Dublin for slightly over €9 million.

The purchaser, who was advised by John Bruder’s Burlington Real Estate, will get a net return of around 8 per cent on the four business premises at 14-18 Aston Quay.

DTZ Sherry FitzGerald are handling the sale of the investment properties which benefits from a large number of commuters using bus services along the city quays.

The cluster of shops occupies the ground floor of a four-storey over basement period building which was redeveloped a decade ago by Garret Kelleher’s Shelbourne Developments.

He subsequently sold on 11 apartments on the upper floors as well as the retail units and the fitness centre. The three retailers are locked into 25 year leases from 2004 while Crunch Fitness is trading on a 35 year lease.

The lettings are currently producing a rental income of €735,000 with 75 per cent of the income coming from SuperValu and Boots. The UK chemist chain only traded for a short period after signing the lease and has been attempting to sublet the premises.

The Musgrave-owned SuperValu is paying a rent of €385,000 for 700 sq m (7,535 sq ft) at street level and 167 sq m (1,798 sq ft) in the basement. The Boots unit accounts for a rent of €175,000 and covers a ground floor area of 164 sq m (1,765 sq ft).

Cafe Sol is paying a rent of €35,000 for 62 s q m (667 s q ft) while Crunch Fitness contributes €140, 000 for 1,950 sq m (almost 21,000 sq ft) at basement and first floor levels.

The Aston Quay block traded from the early 1900s up to 1984 as McBirney's department store and subsequently as the Virgin Megastore before it was acquired by Shelbourne Developments.