The sale of a Bank of Ireland (BoI) branch in the suburbs of Limerick city attracted strong interest from private investors, resulting in a sale price that “significantly” exceeded the guide price, according to the selling agent. The branch is let to the bank until March 2039.
The branch on St Nessan’s Road, Dooradoyle, a single-let, long-term investment opportunity, was put on the market for €1.7 million in April last year. According to selling agent Colliers, it sold for €1.9 million, reflecting a net initial yield of 5.78 per cent.
The property is located in the bustling Limerick suburb of Dooradoyle, within 3km of the city and close to University Hospital Limerick.
The modern, single-storey detached property comprises 3,625sq ft. It was extended and fully refurbished in 2014, with the added benefit of 20 surface car parking spaces, on a site of about 0.34 acres.
The property is held under a Full Repairing and Insuring lease to BoI which commenced in March 2014 and expires in March 2039, providing a long unexpired term of 14.3 years, with no break options. The next rent review is due in March 2029, CPI-linked, with no caps or collars. The passing rent is €120,710 per year.
Michele McGarry, head of capital markets with Colliers, said: “The sale attracted very strong interest from private investors, both local and overseas. Buyers were attracted by several factors including the very long unexpired term, coupled with the strong micro-location, the rent review provisions and importantly the blue-chip covenant. There are very limited similar opportunities currently available on the market, with an abundance of cash chasing such opportunities.”
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