"Grafton Collection" and other prime Dublin retail spots hit the market

The face of city centre shopping could soon be changing depending on the buyers...

"Grafton Collection" and other prime Dublin retail spots hit the market

Google Street View

A number of high-profile retail properties in Dublin city centre have just gone on sale.

Real estate firm Savills has put a number of shop buildings that span some of Grafton Street and Duke Street on the market, representing one of the biggest Irish high street retail investment sales in recent years.

The "Grafton Collection" has a price tag of €40 million and comprises 21-23 Grafton Street and 24 Duke Street (lot one), and Creation Arcade (lot two).

It includes buildings currently leased by Claire's, Fields, Hickey's Pharmacy and Nespresso.

According to Savills, the combined revenue from the properties is roughly €1.95m per year.

Director of investments Domhnall O'Sullivan said:

"The Collection offers high profile assets on Ireland's premier retail street, with an evolving retail sector and an increase in occupier demand, Grafton Street is witnessing strong rental growth making it a number one choice for investors."

Sticking with the Southside of the capital, Kennedy Wilson is looking to sell the building currently housing KFC on Westmorland Street, Costa Coffee on College Green and Paddy Power on Fleet Street. Crossing the Liffey, it is also selling the Three store on Henry Street.

The combined guide price for the four investments is in excess of €14.5m, with Savills again responsible for bringing them to market.

The property currently leased to Three Ireland is the highest value asset of the four, with its price of €8.25m reflecting a net initial yield of 4.93%.

The property comprises a mid-terraced four storey building extending to approx. 276.7 sq.m (2,979 sq.ft). The property benefits from significant frontage onto Henry Street and is positioned on the busy O’Connell Street side – Dublin’s main thoroughfare.

The current rent roll stands at €425,000 per annum and an incoming investor will benefit from a long unexpired term of more than 15 years with the protection of upwards only rent reviews.

KFC is being offered to the market at a guide price in excess of €3.5m, Costa Coffee has a guide price in excess of €1.9m and the Paddy Power space is expected to go for over €850,000.

Dessie Kilkenny of Savills said:

“Given the high profile city centre locations of these retail assets, we expect demand, particularly from private and non-property related investors, to be exceptionally high.

"These assets represent a low-risk investment due to their proximity to Ireland’s largest retail thoroughfares at a time when the retail economy in the country is performing strongly.”