A local jeweller has beaten off strong competition to acquire the freehold interest in a prime retail outlet in Galway city's main shopping district
The Galway jewellers Stephen Faller Ltd has paid over €9 million - €2m over the €7m guide - for the freehold interest of its business premises at Williamsgate Street in Galway city centre.
The long-established trader beat off several investors for the freehold interest, the most valuable to have come on the open market in the city in recent years. Michael Clarke of Hamilton Osborne King who handled the sale said he was not in a position to comment at this stage. The investment was sold by a member of an old Galway family, Mr Acheson Blake, formerly of Ballygloonan House, who has been residing in Fuingerola for a number of years.
The Blake family were once one of the largest landlords in Galway and between the 1630s and 1690 they increased their land holdings from 8,000 to 14,000 acres.
Several years ago, another Williamsgate Street trader, Hanleys Drapery, acquired the freehold of their premises from Mr Blake. The price agreed is likely to have been substantially less than that paid by Fallers which has been trading in Williamsgate Street for more than a century.
The company has been paying a rent of €168,240 and, had it not bought the freehold, it would have been facing a significant increase after the next review in September.
The shop is located on the northern side of Williamsgate Street, between Eyre Square and Eglington Street. Fallers trade out of two interconnecting buildings with 193 sq m (2,077 sq ft) of retail space on the ground floor.
The three-storey building has a combined area of 350 sq m (3,767 sq ft), including office and stores on the two upper floors.
Retail investments and trading opportunities along Galway's two relatively short high streets attract almost as much attention as Dublin's main streets because the prime shopping area is so confined and the footfall is so heavy due to year-round tourism.
The last significant retail investment to go on the open market on Galway's main shopping thoroughfare was Lazo Jewellers, which was bought at auction at the end of 2001 for €3.35 million, a figure that equated to a yield of 4 per cent.
