A portfolio of five commercial properties, including a retail building in Grafton Street, is understood to have been sold for well in excess of £8 million.
The properties owned by the Construction Federation Executive Pension Fund are said to have been sold in individual units and attracted considerable interest, including an offer from an Irish institution for the portfolio.
A reliable source said all the indications were that the achieved price would "exceed fairly comfortably" the guide price of more than £7 million.
The reported price achieved by the properties and the sale in individual units confirmed that individual investors were prepared to compete with institutions and pay top prices for commercial property, according to Robert McCarthy, of Hamilton Osborne King.
"It reflects that little or no prime retail opportunities have come up this year, despite significant institutional demand for prime retail property," he said.
"There has not been a property offered in Grafton Street or Henry Street for over a year and so it is no surprise that these properties have made such a significant price. The funds are over-burdened with money, but they just cannot spend it."
The trustees of the fund intend to continue holding property as an asset, but will reinvest the proceeds from its entire property portfolio in indirect property dealings. With the exception of the Grafton Street retail building, "the jewel in the crown of the portfolio", the remaining properties had not performed impressively with regard to rental income.
The portfolio includes the Marathon Sports outlet at 40 Grafton Street, which was advertised for tender at around £2.8 million. The 955 sq ft shop and basement are let to Marathon Sports and Bronwyn Conway at a rent of £114,000 per annum, and it is said to have achieved in excess of £3 million, which would represent a 3.5 per cent yield.
Victorian buildings at Leeson Park, occupied by the Association of Certified Accountants, and Northbrook Road, which houses the National Safety Council, attracted a great deal of interest from private investors.
The 2,700 sq ft property in Leeson Park, which has 20 car-parking spaces, has a current rent of £36,000. This is expected to rise to £45,000 when it is reviewed next September. A price of £650,000 would produce a yield of 6.3 per cent.
The 3,000 sq ft house in Northbrook Road has a rental income of £24,500 and a rent review is due next year. When the leases expire, it is likely that the properties may be converted back into family homes.
The largest property in the portfolio is Joyce House, in Lombard Street, which is occupied by the Registrar for Births, Deaths and Marriages under a 35-year lease from 1982. The rent of £148,000 is due to be reviewed in 2001. The building has been valued at an estimated £2.2 million, equating a yield of 7 per cent.
The remaining property in the portfolio is an office at 15/16 Dame Street, which is let to Telecom Eireann under a lease which expires in 2010.
