It was announced today that Stephen McCarthy of Savills has brought a unique portfolio of prime Dublin commercial properties to market located on Upper and Lower Liffey Street, Dublin 1, Rathmines Road Lower, Ranelagh, Dublin 6 and Blackrock, Co. Dublin with a guide price of €11.75m.
The Liffey Portfolio, which comprises of eight commercial properties in total, extends to approx. 1,857 sq.m (approx.19,989 sq. ft) and currently generates a net passing rent of €487,500 per annum.
However, Savills say this has the potential to significantly increase to an estimated €850,000 per annum once the vacant elements are leased and forthcoming rent reviews are completed offering the purchaser a potential gross income yield of 7.23%.
Notwithstanding the current rental income stream and the upside achievable through immediate leasing initiatives, the Liffey Portfolio also offers the purchaser opportunities for an even higher return in the medium term. Subject to planning, an additional two floors of office accommodation at 23 Rockhill, Blackrock could be added to the existing super structure.
Savills say a change of use from commercial to residential use at first floor level in Ranelagh and Rathmines would add further diversity to the overall use mix and income profile; while on Lower Liffey Street adjacent to The Grand Social Bar/ Restaurant - a prime development opportunity offers a variety of options which could be realised in tandem with the proposed implementation of the Liffey Street Plaza being championed by Dublin City Council which will enhance the commercial appeal of the Liffey Street district even further.
The Liffey Portfolio offers a well-balanced north city centre and south Dublin location spread comprising numbers 23, 31, 34 & 35 Liffey Street Upper, 32 & 34 Liffey Street Lower, Dublin 1. A vacant two storey restaurant building at 27 Ranelagh village and two mixed use investments located at 232 Rathmines Road, Dublin 6 and 23 Rockhill, Blackrock, Co. Dublin.
Number 232 Rathmines Road Lower, is located next door to Starbucks at the Swan Shopping Centre in Rathmines. The ground floor portion was recently let to Oxfam for a term of 20 years at an initial rent of €77,500 per annum with a pre-agreed fixed increase to €85,000 effective from 2022.
Other tenants within the portfolio include Irish Permanent TSB plc, Irish Scout Association of Ireland, The Blackrock Cellar Off Licence and All Rooms, Homeware.
Speaking this week, Head of General Retail Agency at Savills, Stephen McCarthy said, "The Liffey Portfolio offers investors a rare opportunity to acquire a diversified mix of prime city centre and south Dublin commercial properties with immediate potential to significantly enhance the current rental income stream in tandem with short, and medium-term asset management / development initiatives which collectively will drive future value and an enhanced return for the purchaser."