The investments comprise a Galway tourist hostel with a potential 8.3pc net initial yield (NIY) and a Drogheda warehouse with a 12.63pc prospective NIY.

The hostel, known as Sleepzone Hostel Galway, is situated on Bóthar na mBan just 350 feet from Eyre Square in Galway city centre.

Purpose-built, the hostel extends to approximately 1,035 sq m (11,151 sq ft) and is laid out internally to provide reception, breakfast room, communal living room, computer room and dormitory accommodation with a total of 192 bed spaces.

TWM are seeking offers in excess of €1.5m and with a current passing rent of €130,000 per annum, this suggests a NIY of 8.3pc, assuming standard purchase costs of 4.46pc.

It is let to Sleepzone, a long-established Galway hostel operator, under a 21-year lease from April 2001 which suggests that there is less than four years to run.

The property is easily accessible from all parts of the city and Ceannt train and bus station, together with the tourist office, private tour operators and the well-known location of Quay Street are located within a one-kilometre radius.

Sarah Winters of TWM is handling the sale and comments that the investment offers a great opportunity for investors in the market, given the asset management potential at lease end with this property and aided by the continued growth in tourism in the Galway market.

“With the lure of Connemara’s rugged landscape or the buzz of Quay Street on a summer’s afternoon, Galway is one of Ireland’s most popular tourist destinations, with strong demand for accommodation ranging from hostels to five star hotels,” she adds.

Its scale and purpose-built nature may also appeal to international hostel operators which have been seeking these types of properties in Ireland and in major tourist destinations. Such interest is not just due to Ireland’s burgeoning tourist industry, but also to travel by young people in the 18-35 age group which is on the increase. The United Nations World Tourism Organisation predicts 370 million of them will be on the move worldwide by 2020.

As a result, Colliers International believes hostel revenue growth will increase globally at an annual rate of 8pc.

But in Ireland, as in many countries, the market is also very fragmented and still dominated by small, independent operators.

The Drogheda warehouse is let to Harvey Norman, the electrical and furniture retail chain, and not alone could it generate a 12.63 pc NIY but it also offers upward-only rent reviews.

Located at East Coast Business Park, the property comprises two modern interconnected warehouse units extending to 2,247 sq m (24,187 sq ft).

Harvey Norman Leasing (Drogheda) Limited are the tenants on a 20-year lease from May 2007 with a break option in year 15.

TWM are seeking offers in excess of €1.4 million, which equates to a capital cost of €623 per sq m (€57 per sq ft). Its current annual rent is €184,640.

Michele Jackson at TWM comments that the investment offers buyers “a great high-yielding opportunity at a price well below the build cost”.

“The secure income has the benefit of a strong parent company guarantee.”

East Coast Business Park is close to the M1 motorway which provides good connectivity to the Dublin Belfast corridor as well as to the arterial routes radiating around the capital.