With the Dublin Docklands Development Authority due to be wound up later this year, it has instructed its property agents HWBC to offload three retail investments at Hanover Quay on Grand Canal Dock in Dublin 2.
Pat Campion of the agency is guiding €1,585,000 for the three units, two of them rented and the other vacant, on the ground floor of the Hanover Quay apartment development.
Alternatively, the agents will sell each of the retail units separately. The largest of the them, Herbstreet Restaurant, has a guide price of €700,000, which will give an income yield of 8.89 per cent after acquisition costs are taken into account.
The restaurant originally had a headline rent of €120,000, which was cut in January 2012 to €65,000 for five years and will rise to €75,000 for the five years from 2017. The restaurant is comprised of two interconnecting retail units extending to more than 150sq m (1,694sq ft).
HWBC is looking for €545,000 for the slightly larger Bakers Coffee Company premises which has a second frontage on to Asgard Road. The tenant is paying a rent of €40,000 per annum under an up and down market rent review clause from last February. The tenant has break options in the 5th and 15th years of the lease.
The third unit priced at €340,000 has a floor area of over 85sq m (924sq ft) and is currently vacant. It was previously used as a gallery. HWBC says it has received a number of offers to rent the premises at about €35,000 per annum.
