Property Advisors, CBRE last week launched what they said would be one of the most exciting investment sales of 2017.
They have brought 100-101 Grafton Street & 4-5 Wicklow Street to the market for sale by Private Treaty, quoting €48million which equates to a net initial yield of 3.58%. This prime asset is let to AIB Plc on a 20 year lease from 7 July 2010 producing an annual rent roll of €1,800,000.
100-101 Grafton Street has a prime position on Dublin’s premier retail street. The property is situated on the west side of Grafton Street and is immediately adjoined by River Island and Weirs Jewellers. Other well-known fashion and luxury brands in the immediate vicinity include Brown Thomas department store, Tommy Hilfiger and Marks & Spencer.
CBRE are instructed to dispose the asset on behalf of GLL Real Estate Partners, and anticipate a strong level of interest from Irish Institutions and European Investors.
The building also has the benefit of profile to the pedestrianised section of Wicklow Street immediately opposite the recently refurbished Brown Thomas department store. The building is of period construction with feature red brick elevations to the upper floors, traditional timber frame sliding sash windows and feature stone façades at ground level.
Footfall on Grafton Street is unrivalled by any other high street or shopping Centre in Ireland where the annual footfall is estimated to be 53,598,537 during 2016 (source: Dublin Town).
According to CBRE research, the street has the most extensive provision of retail with 91 outlets, providing over 75,000 sq m of retail accommodation. Fifty nine percent of these outlets are occupied by international retail tenants, whereas 41% are occupied by national retailers.
Connectivity to Grafton Street is excellent and is continuously improving. The street has close links to all major modes of transport. The LUAS Green Line terminates at the top of Grafton Street, carrying over 14 million passengers per annum (38,000 per day). The Luas Cross City Project is due for completion by November 2017. This will provide new local stops at Trinity College and Dawson Street and link the south tram line, the LUAS Green Line with the north/west line, the LUAS Red Line.
With positive retail spending 2013-2016, CBRE estimates there have been 12 transactions of Grafton Street assets accounting for approximately €253 million. 43% of the properties were acquired by Irish Institutions such as Irish Life and IPUT, whereas 37% were acquired by European/International Investors such as GLL and Hines.
Today, CBRE estimates that 60% of the retail buildings on Grafton Street are in the ownership of Pension Funds/Institutions while 40% are in the ownership of Private/Individuals and owner occupiers. The most prominent landlords on the street are Irish Life, Aviva, State Street, GLL and IPUT.
Natalie Brennan of CBRE says, "We are anticipating strong demand from a wide cohort of investors, and further remarked that the ownership structure has evolved on Grafton Street over the last three years with Irish Institutions and European Investors keen to secure a presence on the street. This has been evidenced by the sale of the Sovereign Portfolio to Irish Life and more recently the Grafton Collection to Hines."
Source: www.businessworld.ie
