French investor pays €4.175m for Bank of Ireland Walkinstown branch

MNK Partners in line for 6.42% net initial yield following off-market acquisition of Dublin 12 bank premises

Bank of Ireland's former Walkinstown branch premises
Bank of Ireland's former Walkinstown branch premises

French fund MNK Partners is in line for a 6.42 per cent net initial yield on its investment following its purchase in an off-market transaction of the Bank of Ireland branch premises in Walkinstown, Dublin 12. MNK has acquired the building at 177 Drimnagh Road on behalf of its FPS Europe + fund.

The subject property is let on a full repairing and insuring (FRI) lease to Bank of Ireland from the October 24th 2012, for a term of 25 years, with no break options. The lease is subject to five-yearly fixed rental uplifts of 15 per cent.

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 comprises a part-single and part two-storey detached premises and extends to a total area of 1,099 sq m (11,838 sq ft). The accommodation includes retail space, banking hall, manager’s office, meeting rooms, strong rooms, comms room and back offices.

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Commenting on the deal, Michele McGarry of Colliers said: “The sale of Bank of Ireland’s Walkinstown premises is indicative of the appetite for long-income assets. The fixed five-yearly uplifts added to the investment proposition in this case.”

Kevin McMahon of Savills acted on behalf of the purchaser. He said: “We are delighted to have represented MNK Partners on this off-market acquisition. Bank of Ireland Walkinstown represents a unique long-income investment to a blue-chip tenant. We look forward to continuing our relationship with MNK Partners and supporting them on further investments in the Irish market.”

Ronald Quinlan

Ronald Quinlan

Ronald Quinlan is Property Editor of The Irish Times