French fund MNK Partners is in line for a 6.42 per cent net initial yield on its investment following its purchase in an off-market transaction of the Bank of Ireland branch premises in Walkinstown, Dublin 12. MNK has acquired the building at 177 Drimnagh Road on behalf of its FPS Europe + fund.
The subject property is let on a full repairing and insuring (FRI) lease to Bank of Ireland from the October 24th 2012, for a term of 25 years, with no break options. The lease is subject to five-yearly fixed rental uplifts of 15 per cent.
The passing rent is €294,918 per annum with the next fixed uplift in 2027 at which point the rent will increase to €339,155 per annum reflecting an increased yield of 7.3 per cent. The final rental increase to €390,028 per annum in 2032 will provide the new owner with an increased return of over 8.4 per cent.
The property comprises a part-single and part two-storey detached premises and extends to a total area of 1,099 sq m (11,838 sq ft). The accommodation includes retail space, banking hall, manager’s office, meeting rooms, strong rooms, comms room and back offices.
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Commenting on the deal, Michele McGarry of Colliers said: “The sale of Bank of Ireland’s Walkinstown premises is indicative of the appetite for long-income assets. The fixed five-yearly uplifts added to the investment proposition in this case.”
Kevin McMahon of Savills acted on behalf of the purchaser. He said: “We are delighted to have represented MNK Partners on this off-market acquisition. Bank of Ireland Walkinstown represents a unique long-income investment to a blue-chip tenant. We look forward to continuing our relationship with MNK Partners and supporting them on further investments in the Irish market.”
