Savills, on the instruction of Duff & Phelps, are bringing 57/58 Grafton Street to the market by private treaty guiding a price of €16 million, which equates to a net initial yield of 4.04% after standard purchaser’s costs.

The property is let in its entirety to Life Style Sports Ltd on a 20 year lease from November 2014 with break options in years 10 and 15, paying a rent of €675,000 per annum.  Trading as Life Style Sport’s Irish flagship store, the lease is guaranteed by Stafford Holdings Limited and a bank guarantee is also in place to provide further security. 

57/58 offers superb reversionary potential with the shortage of good quality retail space in the city and high levels of occupier demand driving rental levels.  This demand is the result of strong employment growth driving the retail recovery, with the ESRI predicting a further 50,000 new jobs will be added this year alone.   

Prior to the tenant taking occupation in late 2014, Duff & Phelps amalgamated and refurbished numbers 57 and 58 to provide a four storey over basement building measuring approximately 1,150 sq m (12,400 sq ft); which includes 604 sq m (6,500 sq ft) of retail accommodation on the ground and first floor.  Boasting 11 metres of frontage to Grafton Street, the property also benefits from an entrance onto the bustling South King Street.  Located at the southern end of Grafton Street, the property occupies a prominent position on Ireland’s most prestigious retail destination with neighbouring occupiers including Massimo Dutti, Ted Baker, Reiss, Zara and H&M.    

The reversion in the long leasehold interest of numbers 54 (ground and basement) and 53 South King Street (basement only) is also included in the sale which are occupied by Oxfam.  

Diane Crean, Associate Director of Investments at Savills Ireland commented;

“57/58 Grafton Street offers a unique opportunity for investors both domestic and international seeking to secure a high profile, reversionary retail asset on Ireland’s premier retail street.  The retail sector of the Dublin market has witnessed a significant turnaround in recent years with jobs growth and retail sales resulting in occupier demand from top international brands such as Hugo Boss, COS, Space NK and H&M’s brand ‘& Other Stories’.   This has resulted in strong rental increases and a scarcity of good quality space. With approximately 9.5 years term certain, significant reversionary potential and a well secured lease in place we expect 57/58 to appeal to a wide number of investor types”