PRIVATE investors were again active in the Dublin property market this week, buying Phibsboro Shopping Centre and the Virgin Cinemas opposite the ILAC centre in Parnell Street, Dublin 1, for a combined price of over £15 million.
Two businessmen paid £4.75 million for the Phibsboro centre in a deal which will give them an initial return of 8.75 per cent.
A separate consortium paid £10.4 million for the cinemas, two restaurants and a family entertainment complex in the Parnell Centre. The yield on the cinemas will be 7.25 per cent while the return on the other units will be 7.5 per cent on top of capital allowances of about £4.5 million.
The Phibsboro centre was sold by Power Supermarkets as part of its policy of concentrating on retailing rather than property management. The present rent roll of £450,000 can be increased if the new owners find tenants for vacant office space in the adjoining block. The centre was developed in the late 1960s and is anchored by Quinnsworth, which owns its own store. The supermarket is taking over the former Penneys store, giving it 20,000 square feet in total. The 17 unit shops continue to trade successfully despite the need to upgrade the centre. The vendors were advised by Lisney and Chatham Estates acted for the purchasers.
for the Sheridan Group in finding buyers for the cinemas at £4.4 million. Two other groups agreed to purchase them but later pulled out. Virgin is paying a rent of £350,000 per annum.
The same consortium of 10 investors from Dublin and Galway paid £6 million for the three other retail units trading beside the cinemas. These are Century City, a family entertainment centre paying a rent of £250,000; Strike 4 restaurant, which is rented at £130,000 per annum; and fast-food outlet Flix, which pays a rent of £120,000.
The three units are operated by the Sheridan Group which is due to begin work before Christmas on the third phase of the Parnell Centre. Anglo Irish Bank is to fund the £6 million development which will include 30,000 square feet of retail space and an IMAX screen which will be 80 feet high by 40 feet wide.
Two years ago, four Dublin businessmen paid £3.9 million for the multi-storey car park in the Parnell Centre. The purchase is providing a yield of 7.75 per cent in addition to the tax breaks. The 501-space car-park is rented by an Irish Life company, Park Rite, at a rent of £300,000 per annum.
The opening of the Parnell Centre marked the start of the rejuvenation of Parnell Street after being in decline for decades. Several other major schemes have been completed and others are planned for vacant sites over the next year.
