Banking on Waterford

INVESTOR demand for quality buys outside the main two or three Irish cities is about to be sampled — with the offer of a fine AIB bank branch in Waterford City, with an excellent covenant.

Just launched is 72/74 The Quay, the bank’s principal branch in Waterford City. It’s in a pivotal position in the heart of the city, by John Roberts Square and Barronstrand Street.

It is priced at €2.25m, and has a net initial yield of 8.7%, at a rent of €204,000. A four-storey classical building with 6,200 sq ft, it’s let to the bank until 2027, with a break option five years before that, on upward-only terms with five-year reviews. Surveyor Eoin Ryan, of DTZ Sherry FitzGerald, says “it’s everything an investor could wish for, in an unrivalled location: it’s exactly where you’d want to be in the city.”

Given the proven recovery in investor activity in Dublin, Cork and Galway, Mr Ryan says this sale will be a good test of demand for prime investments in Waterford: “strong competition for well-covenanted, quality retail and office investments in Dublin and the major regional cities, coupled with the limited volume of quality product for sale, has led to investors seeking properties beyond these areas.”

Joint agent Des Purcell of Purcell Properties adds “this property should prove attractive to a wide range of purchaser types, including private investors and funds”

The four-storey commercial building has an ornate, cut-stone facade and is in exceptionally good condition.

A protected structure, it has retail banking accommodation at ground-floor level, and on three floors overhead, with a modern, two-storey extension onto Cathedral Street. Owned by a private investor since 2007, it earns €204,400 pa.

DTZ say “it’s a rare opportunity to secure a high-profile property let to a strong covenant with a long, unexpired lease term”.

* DTZ Sherry FitzGerald, 021-42754545; Purcell Properties, 051-876514.