A private investor has paid €6 million for a retail investment involving a telephone shop at 46 Grafton Street, Dublin 2, which will give an income return of 7 per cent.
Agent HT Meagher O'Reilly, now trading as Knight Frank, had quoted in excess of €5.5 million for the four-storey over-basement building which is let to Hutchinson 3G Ireland Ltd, trading as 3Mobile.
The 35-year full repairing and insuring lease dates from 1991 and has more than 12 years to run.
Upwards-only lease
Although the premises is currently over-rented at €445,000 per annum, the rent can be reviewed only on an upwards-only basis for the remainder of the lease.
The lease is guaranteed by Hutchinson 3G UK Holdings with an additional bank guarantee equivalent to one year’s annual rent and outgoings payable by the tenant up to a maximum of €550,000. The building, which has been owned by an Irish family for over 20 years, has an overall floor area of 296sq m (3,186sq ft) including 87sq m (936sq ft) at street level.
The ground floor, mezzanine and first floor are all in retail use.
The selling agent said recently introduced planning restrictions on the opening of new phone shops on Grafton Street bestowed an extra trading value on the 3Mobile outlet.
