A private investor has paid €3.4m for the AIB occupied investment in the heart of Rathgar Village with a passing rent of €275,100 per annum.
This will yield the purchaser a return of 7.75% with potential to rise to in excess of 8% if the rear site is developed. The building extends to 9,500 sq ft and was extensively renovated and extended in 2005 prior to the original sale and lease back.
However, the key selling point of this property is the substantial car park to the rear of the building which was granted planning for a 6,000 sq ft office scheme in 2009. This site would readily suit a mews type or townhouse residential development over time, subject to planning permission.
David Carroll of Bannon, who acted for the purchaser, stated ‘the investment offers something unique in that it will provide steady rental income for the purchaser whilst offering the ability for small scale residential development to the rear which will benefit substantially from the recovery evident in the south Dublin residential market’.