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Tetrarch Capital has launched the sale of the River Portfolio with a guide price of €21.5m. The properties for sale form part of the Ulysses portfolio acquired by Tetrarch Capital in 2013 from Lloyds/Bank of Scotland Ireland.
The River Portfolio consists of 27 properties located in central Dublin and is generating a current rental income of €1.83 million per annum. Geographically the majority of properties are concentrated around Dublin 1, 2, with the remainder located in Dublin 8 and 20. The entire portfolio comprises a total floor area of approximately 7,432 sq. m. (80,000 sq. ft.), which is over 90% let.
Over 80% of the income is weighted towards retail tenants, with the remaining income coming from an office block known as The Tannery, located on Cork Street in Dublin 8 and a Licenced Premises trading as the Panti Bar, located on Capel Street in Dublin 1.
The highlight of the portfolio includes 17 retail units located on Lower Liffey Street and Bachelors Walk in Dublin 1, on one of the City’s busiest retail thoroughfares. Occupiers include a mix of established retail operators, including Spar, Butlers Chocolates, Nourish Health Foods, Games Workshop, Decobake, La Terra and Bach 16.
In addition to this, the portfolio also includes a Lidl supermarket extending to 1850 sq. m. (20,000 sq. ft.), located on Cork Street and 2 retail units in Chapelizod Village let on long term leases to Spar and a pharmacy operator. Spar are also tenants within a retail unit in the Tramyard development in Inchicore. Other notable occupiers within the portfolio include the Department of Justice and An Taisce.
Michael McElligott, Managing Director of Tetrarch Capital said:
“The sale of the River Portfolio is part of our continuing strategy to unlock value from our 2013 acquisition of the Ulysses portfolio. We are confident this mixed use portfolio will attract strong interest from both domestic and international buyers.”
QRE confirmed that the portfolio was for sale collectively as a single lot at an asking price of €21.5m, which represents a net initial yield of 8.2% to the purchaser, once standard purchaser’s costs of 4.46% have been deducted. The agency confirmed that it would listen to offers for individual lots but, at this point in time, it was the client’s preference to sell the entire as a single portfolio transaction.
QRE noted that the key drivers of the Irish economy and retail market were positive with unemployment figures down, spending power up and consumer confidence at a 15 year high at the start of 2016.
Conor Whelan of QRE said:
“The recovery is now being experienced throughout the retail industry and in our opinion increasing confidence amongst retailers will continue to drive rents. With rental values continuing to accelerate upwards, investments of this nature are an attractive proposition and we expect average net initial yields for retail investments to compress in the short term.”
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