The subject property is a two-storey, mid terrace building, with a total floor area of 2,685 Sq. Ft. 2,185 Sq. Ft. at ground floor and circa 500 Sq. Ft. at first floor. The property is an excellent investment opportunity occupied by two tenants.
At ground floor level, Churchtown River Limited (Personally Guaranteed by Operators), hold a 20-year lease which commenced on June 1st, 2019 operate a Spar Retail Franchise. At first floor level there is a residential tenant occupying a two-bed apartment.
The total current rent is €60,560 per annum which is broken down as follows:
€41,000 for the ground floor Spar demise and the 1st floor residential apartment is currently let out at €19,560 per annum.
There are agreed incremental rents increases as follows:
Current – €41,000, Year 2 – June 2021 €43,000, Year 4 – June 2022 €44,000, Year 5 – June 2023 €45,000.
The investment derives a Gross Yield of 7% off a rental income of €60,560. This will grow to 7.4% off an income of €62,560 in June 2021. June 2023 will see a yield of 7.6% off an income of €64,560. This excludes any increase in residential income over the next 4 years.
There is also scope for some redevelopment of the property to provide for more residential accommodation by developing the rear of the
first-floor level over the shop and over the attic, subject to the relevant planning permission. Moreover, some negotiation with the tenant
at ground floor could also see some excellent development potential in the yard to the rear, details of which can be discussed in private.
The retail unit was completely refurbished at the end of Nov 2013 where the middle section of the roof (located beside current tills) was removed and raised in line with the other 2 sections. The roof was also reinforced to ‘future proof’ it for future development and a full rewiring including a new fuse board was put in. All equipment, fittings and lighting in the shop were replaced and in the stores area the canteen, staff toilet, customer toilet, freezer room and second office were newly built as part of refurbishment. Planning was also secured for an off-licence to be operated in the premises. In the apartment a full refurbishment was also undertaken with a new kitchen, carpets/
flooring, tiling, furnishings, and painting.
Located on Braemor Road in Churchtown, the property is nestled between Dundrum and Rathfarnham in one of South Dublin’s premier areas. The subject property is close to all modern conveniences of shops, restaurants, cafes and bars and being in a suburban location is bustling with business and benefitting from locals doing their shopping locally now more than ever.
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