The value of car-parking facilities in Dublin’s south inner city has bounced back and now stands at over €50,000 per space, according to the guide price being quoted for 28 spaces going for sale off St Stephen’s Green.
Agents Hooke & MacDonald are seeking €1.5 million for the basement car-parking facilities – equating to a value of €53,571 per space – at Stephen's Hall in the Earlsfort Centre which are rented by Jerdip Properties Ltd, trading as Arthur Cox Solicitors. The company's lease arrangement on the car park at €3,950 per space each year has another 13 years to run. Investors likely to pitch for the investment can bank an income of €110,600 per annum – reflecting a 7 per cent return and further rent increases down the line as the lease provides for upwards-only rent reviews every five years.
The sale is thought to be the first of its kind in the city for many years. Before the property crash investors regularly acquired newly developed car park facilities to avail of generous tax breaks. These are no longer available.
Rents in many of the city’s car parks have fallen to €3,000 and less since the collapse of the property market.
The 28 spaces being marketed at the Earlsfort Centre are owned by the Prem Group hotel management company.
Arthur Cox is one of the top legal firms in the city, with 350 legal staff and more than 600 personnel in all. The firm is understood to be considering a move from its present offices in Earlsfort Centre to a new headquarters in nearby Hatch Street.
