Private investors looking for a strong return on their money in the current era where interest rates vary between negligible and negative are expected to run the rule over the sale of the Applegreen petrol station on Clonskeagh Road in south Dublin.
Located just minutes from both Donnybrook and Ranelagh villages, Belfield and Richview office parks, and UCD, the subject property is being offered to the market by agent Colliers at a guide price of €3.5 million.
The investment, which comprises a petrol filling service station on a site of .21 acres, is held on a 21-year lease from July 2013 with just over 13 years remaining to lease expiry and no break options. The passing rent is €247,500 a year, with the next rent review in July 2024. The guide price equates to a net initial yield of 6.4 per cent, after allowing for standard purchaser’s costs of 9.46 per cent.
Founded in 1992, Applegreen now operate 472 sites employing more than 10,700 people across the Republic of Ireland, UK and the US. According to its 2020 interim report, the group showed a gross profit of €60 million in the Republic of Ireland. With revenues of €1.0835 billion across the group and a gross profit of €206 million.
Apartments
Applegreen’s Clonskeagh Road petrol station is located within a short walk of the Paper Mills site, which sold for over €18 million in February, and is due to be developed as a private rented apartment scheme with scope for 126 apartments. The site is immediately adjacent meanwhile to a busy neighbourhood retail parade with occupiers including Harry’s Bikes and Bombay Pantry. The long-established Ashtons Bar and Restaurant is also located close by.
Michele McGarry of Colliers says the sale represents “a great opportunity” to acquire a long-term investment opportunity let to a blue-chip tenant.
“The yield profile when compared against negative interest rates on cash deposits will attract interest from high net worths ,” she says.
The petrol station is at the hub of impending development. It is adjacent to the Paper Mills site, which sold for over €18 million in February, and is due to be developed as a private rented apartment scheme with scope for 126 apartments.
