Prime city centre investment with added value prospect – The Independent, September 3 2020
Way to go: The mixed use property on Dawson Street offers plenty of scope for developers and investors
Aviva Life and Pensions Ireland DAC is selling one of Dawson Street’s best known mixed-use properties, Royal Hibernian Way (RHW) in Dublin.
It currently generates annual rents of €2.78 million and the joint agents TWM and JLL say there is potential to significantly increase this rent by leasing the vacant retail units where there is active tenant demand or where they have been kept vacant to facilitate the redevelopment of 12 Duke Lane.
There is also an imminent rent review for the offices space let to Davy stockbrokers.
The property may also appeal to developers as there is scope to extend 12 Duke Lane and increase the overall floor area of the existing office space on Dawson Street.
They are quoting a price in excess of €80m which equates to a capital value per sq ft of about €867.
Based on the passing rent the price would also generate an initial yield of 3.16pc.
Agents Michele Jackson of TWM and John Moran of JLL also say that when vacant units are let and rent review completed, this yield has the potential to increase to more than 5.8pc before any redevelopment is taken into account.
With a total floor area of 92,888 sq ft, the property includes about 72,000 sq ft of office space of which about 66,000 sq ft is Davy Stockbrokers’ headquarters. The remaining office space at 12 Duke Lane, is currently intentionally vacant as planning permission has already been achieved to double the size of the building.
RHW’s retail quarter accommodates almost 21,000 sq ft of retail and hospitality space, all of which has recently been upgraded.
Its mall provides a link through from Dawson Street and Molesworth Street to Grafton Street and includes retailers such as Boylan’s Shoes, Carol Clarke Jewellers and Leonidas Chocolates.
Its strong hospitality offering includes the Lemon and Duke bar owned by Noel Anderson and his business partners, rugby legends Sean O’Brien, Jamie Heaslip and Rob and Dave Kearney, as well as the renowned Marco Pierre White steakhouse, Isabelle’s restaurant, and the recently opened Argentinian steakhouse, Gaucho BAH33°.
The Luas Cross City line stops on Dawson St near Royal Hibernian Way’s entrance.