Savills Ireland have reported that they have sold a commercial premises in Monaghan Town for 13 times the value of its passing rent.
The Monaghan NCT Centre was sold at auction in Dublin last Thursday for €141,000 more than its Guide Price.
The property is let on a 30-year lease with 10-year break provisions at an annual rent of €27,500 to Applus who run the National Vehicle Testing Centres throughout the country.
The property was offered for sale on behalf of Joint Receivers Neil Bannon & Paul Doyle of Bannons.
Loman Dempsey, Senior Surveyor at Savills said: "We initially offered the property for sale by Private Treaty with a guide price of €220,000 to reflect the fact that there is a break clause every 10 years in the 30 year FRI lease. Interest in the property was immense and we took the decision that in the interest of fairness to all enquiring parties that we would conduct the sale of the property by auction. A large attendance witnessed 40 bids being placed on the property during the auction."
With an annual rent just in excess of €27,500 the bidding opened at €180,000 and quickly progressed to the selling price of €361,000.
“We had both local and national interest in this asset with the eventual purchaser, a Galway businessman beating off stiff opposition from two Dublin based estate agents, a local accountant and a local solicitor (all acting on behalf of clients).
Savills said the sale highlights the large number of investors in the sub €500,000 price bracket seeking out property as a “safe haven” for their cash "in the light of the current low returns from deposits and the recent removal of the bank guarantee for deposits over €100,000".
Loman Dempsey said: "The Capital Gains tax exemption on assets held for 7 years and acquired before the end of this year is also driving this market."