A Bank of Ireland branch office leased on a long-term basis in Killarney, Co Kerry, is to be offered for sale to investors with a guaranteed rental uplift every five years.
Joint agents TWM and DTZ Sherry FitzGerald are seeking in excess of €4.89 million for the purpose-built bank branch which is let on a 25-year full repairing and insuring lease from August 2011.
A key attraction of the investment is a pre-agreed 15 per cent uplift in the rent throughout the lease term, with the next rental uplift in August 2016 to €299,000 per annum.
This will show a net initial yield of 5.85 per cent off the topped up rent and a reversionary return of 6.73 per cent from August 2021 once standard purchasing costs of 4.46 per cent are taken into account.
The bank branch was completely refurbished and extended in 2011 to meet the bank’s needs and now provides 777sq m (8,360sq ft) of space with nine car parking spaces to the front of the site and additional staff parking to the rear.
The joint agents say they expect strong interest from investors looking for a long-term secure income investment property let to a Grade A covenant.
“The pre-determined inbuilt income growth together with the fact that the investment is underpinned by well positioned real estate in a prosperous town will appeal to a range of investors either looking to buy with cash or to put some finance in place.”
Separately, Justin Noonan of TWM is seeking offers over €612,000 for the modern Permanent TSB bank branch in Balbriggan, Co Dublin, which is producing a rental income of €56,000 per annum under a 20-year lease with about 10 years to run. The ground floor unit extending to 250sq m (2,691sq ft) was recently refurbished.
