Three bankers hit Munster market

THREE working bank premises, all on long leases to AIB, hit the market this week as investment buys through Irish and European and GVA Dónal Ó Buachalla.

With unexpired leases of 15 years apiece and a tenant break option in nine years time, the Munster properties all have prominent positions in their respective towns and all have been refurbished in the past 12 months.

The joint agents are offering the premises singly, or in one lot and stress the strategic importance of the properties in the AIB network.

Strong interest from investors is expected, says Trevor McCarthy of Irish and European, because of demand for properties of this type — good quality, well located buildings let to strong covenants on long leases.

“The asking price reflects the quality of the tenants and the buildings.

“Taking cognisance of the upturn in demand for good quality investment properties — it’s down to the level of return — you can’t get the same level of return anywhere else.”

The vendor is a private investor whom, it would appear, is taking advantage of the current bullish market in commercial property investment, (and the seven-year CGT exemption).

Local, as well as international, interest is anticipated and the properties are for sale by private treaty with net projected yields of a max of 8.58% given.

That’s based on guide prices ranging from €875,000 to €1.2 million to €2.4m for the properties in Kilrush Clonakilty and Thurles, respectively.

The Thurles property is at Liberty Square and comprises an area of 1,028 sq m on a 20-year leas from 2008 with an annual rent of €215,000, representing the top yield of 8.58%.

The Pearse Street, Clonakilty property, which has a corner position and dual frontage, is on offer at €1.2m with a rent of €103,000 per annum and a total area of 523 sq m.

The yield here is 8.22% with a break option at the end of 2023.

Similar terms apply to the Kilrush property at Frances Street, which is offered at €875,000 and has an annual income of €77,500 and a total area of 390 sq m and would offer a yield of 8.48%

* Details: Irish and European: 021-4277606; GVA Donal Ó Buachalla, 01-6762711