The Doyle Hotel Group has sold another of its property investments, Shelbourne House, a 20-year-old office block on Shelbourne Road in Ballsbridge, Dublin 4. It was bought at around £5.7 million by a private investor in a deal that will give him an initial net yield of close to 5 per cent. Once two rent reviews are completed next year, the yield will rise to 7 per cent.
Three months ago, Doyles sold another part of its investment portfolio for £14 million. This included Rathfarnham Shopping Centre, which was bought by a private consortium at £10 million.
Hamilton Osborne King handled the sale of all the investments, including Shelbourne House, which is located virtually opposite the new office development on the Crampton site at Shelbourne Road. The six-storey block has a total floor area of 30,375 sq ft and 43 on-site car-parking spaces producing a rent roll of £290,500. The entire ground floor is let to An Post as a sorting office on a 40year lease from 1974 at a rent of £46,000 per annum.
The next rent review in September, 1999, is expected to show a significant increase. The Office of Public Works also holds the first, second, third and fourth floors on a 35-year lease from 1977 at a rent of £184,500. The review in this case arises next March. The top floor is occupied by EG Pettit and Co on a 35-year lease from 1976 at £60,000 per annum.
The next rent review is due in October 2001. The sale again underlines the increasing role of private investors in the commercial property market. Business people were the dominant force in the market last year and look like maintaining their hold on market in 1998. Five investments currently being sold by the Construction Federation Executive Pension Fund are expected to be bought mainly by private investors.
