Joint agents Savills and O'Donnellan & Joyce are guiding €4 million for a Galway city centre mixed-use investment which has Bank of Ireland as the anchor tenant.
The corner property on University Road is producing a rent roll of around €413,000 per annum, which equates to an income yield of 9.88 per cent after standard purchaser’s costs.
Accommodation includes ground floor retail space, offices at first floor level and four apartments overhead.
The property extends to some 1,480.79sq m (15,938sq ft) and there is also a basement which incorporates 36 car parking spaces.
Primary tenant
Bank of Ireland is the scheme’s primary tenant with another 7.5 years on its lease.
Its rent of €343,300 for the 627sq m (6,746sq ft) unit accounts for 84 per cent of the scheme's passing rent while the bank has also sub-let its space to Tesco.
The four two-bed apartments, which comprise a total of 371sq m (3,993sq ft), are fully let at €1,200 a month each and there is also additional mast income of €11,000 per annum being generated. However, the 483sq m (5,200sq ft) of office accommodation is vacant so any purchaser has the opportunity to increase the rent roll. The agents suggest the office element would rent for around €15 per sq ft or €78,000 per annum.
Colm O’Donnellan of O’Donnellan & Joyce says “this is a gilt-edged commercial and residential investment opportunity which will appeal to a wide range of investors given the attractive return on offer”.
