TWO tax-driven investments in Dublin's International Financial Services Centre have been sold for yields under 5 per cent - probably a record for a tax-incentive area. One of the units, a 900-square-foot supermarket is rented by Spar at £32,000 per annum. In the second building, Munchies Sandwich Bar, Wrights of Howth and The Laundry and Dry Cleaning shop are paying a combined rent of £55,300 for 1,165 square feet at ground floor level and 1,180 at first floor level.

The exceptionally strong prices paid underline the shortage of property investments with tax shelters. With 100 per cent tax allowances available for all the retail units, the return in the first year will equate to about 6.5 or 7 per cent once the tax breaks are taken into account. The yield in subsequent years will be somewhat less. In the long term, the two investors will be hoping to achieve rental growth to make some sense out of their purchases.