Irish developer David Daly has bought the 'River Island' retail premises on a main shopping street in Dublin for EUR 115 mln. Property advisor Savills Hamilton Osborne King, which acted for Daly, said the purchase price in the off-market deal reflected an equivalent yield of 2.3%. One part of the asset , 102 /103 Grafton Street, was acquired from department store Arnotts, while the other part, 104 Grafton Street, was purchased from Arnotts Staff Pension Fund.
Irish developer David Daly has bought the 'River Island' retail premises on a main shopping street in Dublin for EUR 115 mln. Property advisor Savills Hamilton Osborne King, which acted for Daly, said the purchase price in the off-market deal reflected an equivalent yield of 2.3%. One part of the asset , 102 /103 Grafton Street, was acquired from department store Arnotts, while the other part, 104 Grafton Street, was purchased from Arnotts Staff Pension Fund.
Fergus O' Farrell of Savills Hamilton Osborne King said the 2,100 m2 store is one of the finest retail properties on the street, due to its large retail floor plate and extensive frontage. The property is one of River Island's best trading stores in the UK and Ireland. 102/103 Grafton Street is let to River Island on a 20-year lease from October 2003 with no break options at a current rent of EUR 2.1 mln per annum. The other building is let to River Island on a 35-year lease from July 1988 with no break options for EUR 530,000 per annum. Both leases incorporate 5-yearly upwards only rent reviews.
Grafton Street has seen significant rental growth in recent years. 'A large number of the world's top brands are jostling for position in this prime retail stretch. The lack of good quality opportunities on Grafton Street and Henry Street, Dublin's main shopping streets, continues to be the main driver behind rental levels,' O' Farrell said. 'The acquisition proves despite uncertainty over recent months that demand is still strong for prime well let investments.'
