Retail | Bannon

Two restaurants on high-profile sites for sale at fraction of original cost

24th April 2014/in Brochure, News, Retail

Two fully glazed stand-alone restaurants on high-profile sites along the river Liffey campshires at North Wall Quay in Dublin 1 are to be offered for sale by tender at a fraction of their original cost, with a guiding price of €350,000 for the J2 Grill & Sushi building and €400,000 for the slightly larger single-storey premises close by that currently is vacant.

David Carroll of Bannon advised two of the purchasers.

The north docks has been substantially transformed in the past decade or so with the development of Spencer Dock and more recently the completion of Convention Centre Dublin and the Point Village. Even without taking site values into account, the Dublin Docklands Development Authority (DDDA) spent €1 million about 15 years ago developing each of the two distinctive buildings, which were designed to cater for the dining needs of workers in the adjoining International Financial Services Centre.

The Irish Commercial Real Estate Market Quarter 1

17th April 2014/in Reports, Retail

There was increased activity in Dublin’s retail investment market in Quarter 1 of this year with a total €524m also invested in Dublin’s office market. The acquisition by Hines and HSBC Alternative Investments of 73% of Liffey Valley Shopping Centre for €253m marked the first significant shopping centre sale of the year. Assets on Dublin city centre prime street, Grafton Street, traded for yields ranging from 4.6% to 6.7%.

Dublin accounted for 94% of Q1 investment. Overseas retailers continue to be attracted to Dublin’s prime pitches with Grafton Street, Henry Street and Dundrum Shopping Centre all in high demand.

It is reported by Davy Research, NAMA was the main source of product in Q1 as it accounted for circa €590m of deal flow. NAMA recently announced its commitment to bring at least €250m of deal flow to the market each quarter.

Strong rise in housing and commercial construction sectors since 2006

14th April 2014/in Investment, Lettings, Retail

Both the housing and commercial construction sectors saw stronger rises in activity than in February during March, with rates of expansion at three-month highs in each case. Meanwhile, the rate of decline in civil engineering activity slowed for the second month running and was the weakest since last November.

Commenting on the survey, Simon Barry, Chief Economist Republic of Ireland at Ulster Bank, noted that:“The recovery in the Irish construction sector gathered pace at the end of the first quarter, according to the March results of the Ulster Bank Construction PMI survey. The overall PMI index jumped to 60.2 last month as the rate of expansion picked up to its fastest pace in over eight years. Housing activity continued to rise sharply in March with last month representing the ninth month in a row of expansion linked to residential projects. Commercial activity also continues to expand briskly, while the pace of decline in civil engineering eased for the second month running.”

See full survey

Dublin City Council requests ‘Living City’ tax relief to include offices

11th April 2014/in Office, Retail

DUBLIN City Council (DCC) has requested an extension of the proposed Living City tax relief initiative to include offices in its submission to the Minister for Finance.

All six city councils including Cork, Limerick, Kilkenny, Galway and Waterford have submitted proposals which include the areas of their inner cities where pre-1915 buildings could qualify for the tax reliefs.
DCC proposes to confine the scheme to four areas of the city between the canals. Some might argue that the prices for properties in Merrion and Fitzwilliam Squares, which have sold for up to €2m in recent times, suggest that these squares don’t need tax incentives. Nevertheless DCC points out that older office properties in the area have recently been losing occupiers to modern offices in areas such as the Docklands.

Two Drury Street shops sold for €900,000

9th April 2014/in Investment, Retail

A private investor has paid in excess of €900,000 for two adjoining retail buildings at 24 and 25 Drury Street, Dublin 2, which will show an immediate return of 5.6 per cent. Another building at the opposite end of Drury Street recently made in the region of €520,000.

Both buildings were owned by developer Bernard McNamara as part of the Madrid Portfolio. They were sold on the instructions of Declan Taite of receiver Farrell Grant Sparks.

David Carroll of Bannon, who handled the sale, said “The demand for the two buildings was exceptionally strong, with a dozen formal bids received after more than 100 enquiries. The investment team is the progress of finalising another sale along the street which received similar strong interest and will make it the fourth transaction on Drury Street the team have concluded along this stretch in the last 18 months”.

Online Brochures: 24 Drury Street and 25 Drury Street

IBEC’s prediction of domestic growth good news for Retail

7th April 2014/in Reports, Retail

Fergal O’Brien : IBEC

The Irish economy will grow faster than previously expected as 50,000 jobs are created and consumer spending improves, business group IBEC said in a new report. See full report: Economic Outlook March 2014

This growth will also be driven by higher consumer spending which is expected to increase by 1.9pc over the next 12 months, great news for retail and the shopping centres we manage.

Key issues highlighted in the forecasts include:
Consumer spending: A boost in consumer sentiment, positive news on retail sales and good employment news will lead to a recovery in consumer spending this year. Ibec forecasts an increase in consumer spending of 1.9% in 2014.

Exports: Last year the pharma cliff wiped almost €5 billion off the value of Irish exports. While the effect of the pharma cliff will continue in 2014, it should ease as the year progresses. Strong growth in key trading partners should see a continued robust performance in services exports and a recovery in goods exports.

Employment: Positive sentiment for employment growth now exists in both exporters and those companies operating in the domestic economy, which points to the positive jobs trends in 2013 continuing in 2014.

Grafton Street’s ‘Bus Stop’ sells for almost €3.4m

1st April 2014/in Brochure, Investment, Retail

Signature Capital, the Irish-German real estate investment company, has bought the Bus Stop newsagents shop at 6 Grafton Street in Dublin 2 for almost €3.5 million. The investment will show an initial yield of 6.5 per cent.

Signature Capital’s decision to buy the Grafton Street investment comes just after it agreed to sell the Neumarkt Galerie shopping centre in Cologne to the German bank savings fund manager Deka for €295 million having bought the 37,000sq m centre out of insolvency for €137 million in 2011.

David Carroll and Rod Nowlan of Bannon Investment Department were the agents for this property.

Blackrock Business Park – For Sale or To Let

27th March 2014/in Investment, Lettings, Office, Retail

New to the market is Block 9 Blackrock Business Park, Blackrock, Co. Dublin – For Sale or To Let
(On the instructions of Brendan O’ Donoghue, Russell Brennan Keane (Receiver).

Two storey building extending to 438 sq m. (4,715 sq ft.) with potential for each floor to be self-contained with separate access. Block 9 also features high quality specification with air conditioning and 9 surface car parking spaces included with the property. Current occupiers in the park include; Tektronix Communications, CIT, An Post, Skill Pages and HRBR.

Please view our online brochure: Block 9 Blackrock Business Park, Blackrock, Co. Dublin

For further information please contact Louise Doherty or Katie Williams on 01 6477900

6 Grafton Street For Sale

26th February 2014/in Brochure, Investment, Retail

6 Grafton Street is to be offered for sale by joint selling agents David Carroll of Bannon and Lena Clarke of Lisney and interest is expected to be brisk.

Number 6 is located on a prime retail pitch on Ireland’s premier street between Nassau Street and Duke Street close to Brown Thomas, Marks & Spencer, River Island and Weirs. Grafton Street is following the recovery being experienced in other sectors of the property market. Vacancy levels are falling and the street has attracted new tenants including Massimo Dutti, Levi’s, Cath Kidston, Vans and Ecco. This improvement in occupier demand is expected to translate into a recovery in rental values.

The entire of 6 Grafton Street is let under a single lease to M&M Enterprises Ltd trading as Bus Stop Newsagents who retail from the ground and basement floors. The upper floors are sublet and in use as an internet café and tanning salon. The total annual rent is temporarily abated to €240,000 per annum and the lease has another 6 years to run expiring in August 2020. The building extends to 242 sqm (2,605 sqft).

Lena Clarke of Lisney and David Carroll of Bannon, who are handling the sale, anticipate strong interest and are requesting tenders from prospective purchasers by 12.00 noon on 20 March 2014 (unless previously sold). Purchases completed prior to December 2014 will benefit from the favourable Capital Gains Tax provisions extended in last year’s budget.

The selling agents are guiding a price of €3 million, which reflects an initial yield of 7.65%. The property is expected to achieve this level in light of recent sales. Last year the sale of 11-13 Suffolk Street let to Avoca set a new benchmark for prime retail when it achieved €7.2m which was an initial yield of 5.71%. Prior to that 46 Grafton Street let to Hutchinson 3G Irl Ltd achieved €6m which was an initial yield of 7.10%. 103/104 Grafton Street let to River Island was sold for €40m in 2013, reflecting a yield of 7.04%.

For further information contact Lena Clarke, Lisney, on 01 638 2749 or David Carroll, Bannon, on 01 6477900

22 Drury Street, Dublin 2

22nd February 2014/in Brochure, Investment, News, Retail

Bannon, on behalf of Tom Kavanagh (Receiver), is seeking in excess of €350,000 for no. 22 Drury Street a terraced investment property in the heart of the South City Markets.

The property extends to 69.8 sqm (751 sq ft) and is partly occupied by acclaimed make up artist Ken Boylan on a short-term lease with a current passing rent of €24,500 per annum. The upper floors, which benefit from separate access, are currently vacant but in turn key condition. This is the fourth sale along the street the agents Bannon have handled in the last 18 months and they are expecting considerable interest for this latest sale.