Bank of Ireland premises sold for over €4m to French fund

THE Bank of Ireland premises at Walkinstown has been sold for €4.175m, after Colliers concluded the off-market sale.

The sale price reflects a net yield of 6.42 per cent and a capital value of €352 per square foot to French fund FPS Europe+, a specialised professional fund owned by MNK Partners.

The premises at 177 Drimnagh Road, which comprises a part single- and part two-storey detached premises, spans 1,099 square metres and includes a retails section, banking hall, manager’s office, meeting rooms, strong rooms, comms room and back offices, all finished internally to a high standard.

The property is let on a FRI Lease to Bank of Ireland from October 24, 2012, for a term of 25 years, with no break options.

The lease is subject to five-year fixed rental uplifts of 15 per cent. The next uplift is in 2027.

The passing rent is €294,918 per annum with the next fixed uplift in 2027, at which point the rent will increase to €339,155 per annum, reflecting an increased yield of 7.3 per cent.

The final rental increase to €390,028 per annum in 2032 will provide the new owner with an increased return of over 8.4 per cent.

The property is located on Drimnagh Road at the intersection with the Long Mile Road, close to Conor McGregor’s Black Forge pub.

The immediate area is well served by public transport with a regular Dublin bus service and the Luas red line located within a ten-minute walk of the property.

“The sale of Bank of Ireland, Walkinstown represents the appetite for long income assets, the benefit of the fixed uplifts, five-yearly, added to the investment proposition,” said Michele McGarry of Colliers.

Kevin McMahon from Savills acted on behalf of the purchaser FPS Europe +.