Bank Building Investment
An interesting bank building investment property has come up for sale in the south of the country. This is not the first time this particular property has been on the market. It was put up for sale in 2013 by private treaty but was not sold. It was then purchased in a package of loans bought by Cereberus Capital Management.
This bank building investment is now back on the market in 2016, guiding €3.2m, which is a return of 8.74%. This type of return has become fairly standard for blue chip investments. The amount of companies that are now considered ‘blue-chip’ tenants is gradually increasing, but is still very close to an all-time low.
The building itself is not owned freehold, it is held on a 999 year lease which dates back to 1979. It is let to what is currently the most solvent bank in Ireland. There is a tenant break option in 2021, which is five years away. The current rent on the property is €292,000 per annum. The contract is for upward only rent reviews every five years. Such terms are not now common in Ireland as upward only rent contracts were banned some years ago.
This is an €8,000 sq. ft. detached building at the entrance to a major Shopping Centre that was built in 1980. It consists of a ground and lower ground floor level. The ground floor contains the 4,000 sq. ft. customer area.
The Shopping Centre at which this bank building investment is located has a footfall of around 110,000 people per week. These figures would make it the second busiest centre in this particular region. This busy shopping centre contains a range of shops including Tesco, Penney’s, New Look, Lifestyle Sports and Eason’s bookstore along with a range of other stores.