The recent appointment by alternate lender Relm Finance of receivers over 27 properties owned by a sub-fund of Goldstein Property ICAV has opened up a range of opportunities for investors, developers and owner-occupiers.
The first of these are now being brought to the market through agent JLL on behalf of receivers Interpath Advisory with five investments for sale in individual lots across Dublin’s traditional central business district and at Galway’s Ballybrit Business Park.
Taken together, the properties, which range in value from €1.6 million to €2.5 million, carry an overall guide of €8.45 million.
Dublin investments
In the first instance, Carmichael House, 60 Baggot Street Lower, is seeking €1.9 million. The property comprises a four-storey over lower-ground floor Georgian building of 376.7sq m (4,055sq ft). The building comes for sale with eight surface car-parking spaces accessed via Convent Close, with potential for future mews development, subject to planning permission. It is let to a serviced office operator at a passing rent of €200,000 a year, with a break option exercised for February next year.
The second investment is 63 Baggot Street Lower, a vacant Georgian property with a separate two-bedroom mews at 4 Convent Place. Notably, as a former nursing home, 63 Baggot Street was the birthplace of the renowned 20th century artist Francis Bacon. This is commemorated by a plaque on the front wall.
The main building, which requires refurbishment, extends to a net internal area of 320.5sq m (3,450sq ft) while the mews is in pristine condition and measures 83.6sq m (900 sq ft). The property is available for sale in one or more lots and carries an overall guide price of €1.6 million.
The third property is 58 Northumberland Road, a Victorian building housing a dental practice. The property extends to 292.2sq m (3,145sq ft) and has a bespoke fit-out with a number of consultation rooms.
The lease terms include a passing rent of €160,000 a year, with a stepped uplift this August to €175,500 annually and a further fixed uplift to €191,000 yearly in 2030. The quoting price for this property is €2.45 million.
Further information on the sale of these three Dublin investments is available from Brian Shields, Caroline Nugent and Sandra Walsh at JLL respectively.
Galway investments
In Galway, JLL is acting as joint selling agent with Keane Mahony Smith on two office buildings at Ballybrit Business Park. Blocks four and nine are available in one or more lots at an overall guide price of €2.5 million.
Block four has a gross internal area of 1,101.7sq m (11,859sq ft) over three floors and is fully let across three leases to Bluedrop Medical, EnteraSense and Channel Mechanics Technologies. The total passing rent is €140,000 a year with a weighted average unexpired lease term (WAULT) of 2.8 years.
Block nine has a gross internal area of 1,087.1sq m (11,701sq ft) and is partly let to two tenants across three floors to Luminate Medical and Nostra Technologies. Nostra Technologies occupies the entire first floor and part ground floor, while Luminate Medical occupies the entire second floor. The part ground floor of about 280.7sq m (3,021 sq ft) is vacant, however terms are agreed for the letting of this space. The total passing rent for Block nine stands at €97,000 yearly, with a WAULT of 2.3 years, with potential for immediate increase once the final space is let.
The investment is being guided at €2.5 million, which reflects an initial yield of 8.6 per cent based on the passing rent. This yield has the potential to rise to 9.7 per cent once the vacant space is fully let, the selling agents say.
The buildings have ample on-site parking and are situated about 4km from Galway city centre. Ballybrit Business Park is a well-established scheme and serves as location for a number of international companies in the pharmaceutical and technology sectors including Boston Scientific, Johnson & Johnson and Hewlett-Packard.
“The properties' location in an established business park and their strong tenant mix make them an attractive proposition for investors looking to benefit from Galway’s burgeoning medtech and IT sectors,” Brian Shields, of JLL’s capital markets division, says.
Joe Greaney, of Keane Mahony Smith, says: “This investment offers excellent asset-management potential. With its mix of established tenants and ongoing positive engagement, it offers stable income and opportunities for growth in a market where quality suburban office stock is increasingly sought after.”
The five assets for sale form part of a wider group of 27 properties now under the control of receivers. The 27 assets – which also include the Israeli embassy’s former home, which it leased at 23 Shelbourne Road in Ballsbridge, Dublin 4 – are owned by a sub-fund of Goldstein Property ICAV, an investment vehicle managed by Mel Sutcliffe’s Quanta Capital.
Commenting at the time of Relm Finance’s appointment of receivers over the properties, a spokesman for Quanta Capital said the company was “disappointed by this development as we were working with the lender to secure an extension of the loan facilities”.
The spokesman also said: “We will continue to seek a resolution. Goldstein ICAV is still active in the market and Quanta, on behalf of Goldstein, manages over 500 properties. It is important to note that the tenants of these 27 properties are unaffected.”
