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6 Grafton Street For Sale

6 Grafton Street is to be offered for sale by joint selling agents David Carroll of Bannon and Lena Clarke of Lisney and interest is expected to be brisk.

Number 6 is located on a prime retail pitch on Ireland’s premier street between Nassau Street and Duke Street close to Brown Thomas, Marks & Spencer, River Island and Weirs. Grafton Street is following the recovery being experienced in other sectors of the property market. Vacancy levels are falling and the street has attracted new tenants including Massimo Dutti, Levi’s, Cath Kidston, Vans and Ecco. This improvement in occupier demand is expected to translate into a recovery in rental values.

The entire of 6 Grafton Street is let under a single lease to M&M Enterprises Ltd trading as Bus Stop Newsagents who retail from the ground and basement floors. The upper floors are sublet and in use as an internet café and tanning salon. The total annual rent is temporarily abated to €240,000 per annum and the lease has another 6 years to run expiring in August 2020. The building extends to 242 sqm (2,605 sqft).

Lena Clarke of Lisney and David Carroll of Bannon, who are handling the sale, anticipate strong interest and are requesting tenders from prospective purchasers by 12.00 noon on 20 March 2014 (unless previously sold). Purchases completed prior to December 2014 will benefit from the favourable Capital Gains Tax provisions extended in last year’s budget.

The selling agents are guiding a price of €3 million, which reflects an initial yield of 7.65%. The property is expected to achieve this level in light of recent sales. Last year the sale of 11-13 Suffolk Street let to Avoca set a new benchmark for prime retail when it achieved €7.2m which was an initial yield of 5.71%. Prior to that 46 Grafton Street let to Hutchinson 3G Irl Ltd achieved €6m which was an initial yield of 7.10%. 103/104 Grafton Street let to River Island was sold for €40m in 2013, reflecting a yield of 7.04%.

For further information contact Lena Clarke, Lisney, on 01 638 2749 or David Carroll, Bannon, on 01 6477900