Bank sales on the money

A LIMERICK City bank building, on O’Connell Street and Bedford Row, is being sold for as much as €10m — a recent Munster-bank investment sale price record.

Bank sales on the money

The three-storey Bank of Ireland, at No 125 O’Connell Street, was refurbished in 2009, and was sold on via a sale and leaseback to at private investor for c €20m. It’s let as an entire to Bank of Ireland, at €685,000 pa, with 17 years left on an unexpired lease.

It was marketed at €8m by Ross Fogarty, of Knight Frank, who declined to comment on local repots it is fetching close to €10m, showing a return of c 6.5%.

The same Knight Frank agent currently is also moving to a best bids call by May 13 on the so-called Bank Portfolio, with an overall guide of €48 million for 12 Dublin AIB branch investment, amassed by developer Gerry Gannon (see below.)

And, now, at a far more affordable level, for a wider mix of regular investors and those seeking a pension, is a bank building nicely pitched under the €1m mark in Cork City, with the chance of a return of 9.75% as a net initial yield.

Agents Eoin Ryan and Peter O’Flynn, of DTZ, this week bring No 33 North Main Street in Cork’s traditional core, to market for €900,000, and with a passing rent of €91,700 pa, offered by private treaty.

Eoin Ryan of DTZ says there’s now a chance to buy what he terms “an attractive, retail-banking investment opportunity, let to AIB until 2032, under a 25-year FRI lease from 2007.” It’s subject to five-yearly, upward-only rent reviews, with a break option in favour of the tenant in seven years’ time, April 2022.

The mid-terraced period property, at No 33 North Main Street, is part three- and part four-storey, with staff access to Kyrl’s Street, near the Coal Quay and Cornmarket Street.

Understood to have been bought in 2007 by the Shipton Group as an investment, No 33 provides specialist retail banking accommodation at ground floor/banking hall level, with related uses behind and overhead. It has 4,530 sq ft in all, and typically services the western portion of the city centre, including Washington Street, and the north west of the city.

It comes to market after recent investment sales locally that include an Aldi, at Westside Retail Park, Ballincollig, leased at €385,000 pa and selling for substantially over €3m; Mathew House, on Father Mathew Street, Cork, let to AIB on a ten-year lease from 2012, at €196,000 pa, fetching over €2m; student accommodation at Fuller’s Lodge, College Road, earning €185,000 pa and fetching over €2.2m; and Fat Face, Kinsale, let at €80,000 and making €950,000. Also sold were an AIB branch at The Quay, Waterford, on a 20-year lease from 2007, with tenant break option in 2022. That Waterford bank earns €204,000 pa and sold for €2.2m, while a Tralee Bank of Ireland investment has sold for just over €3m, let at €277,00 pa.

At North Main Street, “the strength of the tenant covenant, combined with the established, active commercial city centre location provide an ideal investment opportunity,” says DTZ surveyor, Eoin Ryan, pointing also to the 9.75% net yield potential at the asking price.

DTZ Cork MD, Peter O’Flynn, adds that “the asset is likely to appeal to a wide range of purchaser types, due to the favourable lot size on offer and the attractive lease terms, with a good, unexpired lease term”

  • Meanwhile, Knight Frank have had strong interest in The Bank Portfolio, some 12 Dublin AIB branches all held on upward only FRI terms, and with a rent-roll combined of €3.29 million. They include 37/38 O’Connell Street, with a rent of €399,000, and 7-12 Dame Street, rented at €590,000 pa.

They 12 are offered individually, and in lots, at guides from €2.5 million to €8 million, by best bids May 13.

Details

: DTZ: 021-4275454

Knight Frank, 01-6342466

www.thebankportfolie.com

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