Retail SectorThere will be no shortage of takers for a shop on a prime stretch of Henry Street, writes Jack Fagan
Even with a pent up demand for retail investments in Dublin city centre, few shops have come on the market in recent years on either Grafton Street or Henry Street.
That is one reason why Lisney is expecting strong interest in 36 Henry Street which is going for sale today by private treaty.
The agency is guiding €11 million for the four-storey building which is let to Irish Life & Permanent under a lease which has another 16 years to run.
Ann Hargaden of Lisney describes the investment as "highly reversionary".
The current rent of €240,000 will show an initial yield of 2 per cent but, with the rent likely to increase to around €400,000 when it is reviewed in June 2007, the return will rise to 3.25 per cent.
A small retail investment around the corner at 24 Liffey Street sold last year at an initial yield of 1.56 per cent.
A rent review since then has brought the return up to 3.25 per cent.
Henry Street has seen vast changes in recent years with the redevelopment of the former Roches Stores and the Ilac Centre, and the arrival of top line traders, such as Zara and H&M.
The area is to get an even bigger boost in the next year or two with developer Joe O'Reilly's plans to link up the Ilac Centre with O'Connell Street, and even more ambitious plans by Arnotts to redevelop much of Liffey Street and Middle Abbey Street where the department store has acquired extensive premises from Independent Newspapers.
