Ten retail units in the Pavilion complex opposite Dún Laoghaire Harbour and the Dart station are going on sale today at a guide price of €9.6 million. The shops adjoin the Pavilion Theatre.
The mixed-use portfolio is expected to attract keen bidding, particularly from a number of wealthy Irish families looking for an alternative investment to the low interest rates offered by the banking sector.
Jackie Fitzpatrick of agent JLL is handling the marketing of the 10 retail buildings which are currently producing a rental income of €758,000, a figure equating to a yield of 7.5 per cent. Two of the 10 shops are also in the process of getting new tenants which will push the rent roll out to €905,000, giving the eventual purchaser an attractive return of 9 per cent.
The 10 units extend to 4,764sq m (51,280sq ft) and have a split of rental income between retail and restaurant uses that is almost evenly balanced. Ms Fitzpatrick said the diversification between retail and restaurant income “creates an attractive prospect for potential investors”.
Pavilion 1 consists of five ground-floor shops occupied by an Itsa Bagel, Mao, Eddie Rocket’s and Viking Marine as well as a further unit shortly to begin trading as a restaurant once legal procedures have been completed. The complex also has an ATM and a lower-level gym let to Crunch Fitness as well as outdoor seating areas for the restaurants fronting the harbour.
Pavilion 2, located close to Dún Laoghaire Shopping Centre, consists of a two-storey anchor unit occupied by Eason and Costa Coffee only months after Eason relinquished an option to surrender its lease.
O’Brien’s Fine Wines and Go Bonkers Ice Cream also trade in this area, while a low-level unit is to be let to Just Wing It restaurant once planning approval is secured.
JLL has reported “significant tenant demand” in recent months with a new letting to Eddie Rocket’s and two further lettings currently in legals. The agency said the portfolio provided an opportunity to invest in a number of restaurant brands in an affluent area where there was a huge demand for restaurants and no prime stock available.
