Hooke & MacDonald have launched a high yielding commercial investment in Dublin 15. The Plaza comprises the district retail centre of the established residential suburb of Tyrrelstown, which is located approximately 2.8 km north of the Blanchardstown Centre and 12 km northwest of Dublin City Centre.
The Investment comprises a mix of national and local occupiers including SuperValu, Hickey’s Pharmacy, Permanent TSB, Carry Out Off Licence and Paddy Power, with approx. 50% of the income secured against these five leading national covenants who on average have approx. 10 years left to run on their leases.
The Investment currently produces a net rental income of €1,012,112 per annum from the existing tenancies, which have an average WAULT of approximately 7 years to expiry. There is immediate potential for an increased rental income from the letting of the vacant units, with the projected ERV of the investment being in the region of €1,153,000 per annum, which would represent an increase of approx.14 % higher than the current rental income.
Hooke & MacDonald are quoting a guide price of €9.0 million, which equates to a Net Initial Yield of 10.23% (after standard purchasers costs) based on the current income. Based on Hooke & MacDonald projected ERVs on the vacant units, this could generate a potential net yield of 11.65% once the investment has been fully let by a new owner.
In light of the attractive returns on offer from this income producing investment, Hooke & MacDonald envisage that it should appeal to investors looking for well-located secure investments such as this, particularly where there is potential for further enhancement by pro-active asset management.