Prime high street retail investment opportunity – 4 Henry St, Dublin 1

Savills is bringing to the market for sale a prime retail investment opportunity on one of Dublin’s most prestigious shopping thoroughfares. 

4 Henry Street occupies a prime position on Dublin’s premier shopping street, in the heart of the Henry Street and Mary Street pedestrianised retail parade between major department stores Arnotts and Marks and Spencer and immediately opposite Debenhams and the ILAC Centre.

The property is let to Shuz 4 U, trading as the popular sports footwear brand Skechers on a 15 year lease from September 2010.  The lease is guaranteed by the US parent company Skechers USA Inc until the fifth anniversary of the lease.  There is a tenant break option on the tenth anniversary of the lease.

The current passing rent is €310,000 per annum or 10% of turnover, whichever is the greater.  The lease provides for fixed annual uplifts in the first five years, rising to €315,000 in September 2012, €335,000 in September 2013 and €350,000 in September 2014, or 10% of turnover if greater.

The entire building extends to 522.61 sqm (5,625 sqft) including a ground floor retail floor plate of 170.25 sq m (1,833 sq ft).  The well configured retail unit benefits from over 5.25 metres of prominent retail frontage to the pedestrianised Henry Street.

The freehold property is being offered for sale by private treaty and presents a rare investment opportunity to acquire a recently let property at open market rental levels with attractive fixed rental increases and the further potential for turnover-linked rents.

Despite economic concerns, prime retail continues to perform, with demand from new entrants to the market meaning there is little or no vacancy on Dublin’s prime high streets.  With the property under a new lease from 2010, this augers well for prospects of rental growth.

Fergus O’Farrell, Director of Savills Investment, says: “We are delighted to be able to offer a prime retail investment to the market.  It is rare in this cycle to offer a market-rented high street property of this quality, due to the recent leasing of the asset in 2010, which will be attractive to both private and institutional investors.”

Savills will be quoting a price of €4,950,000, subject to contract, representing a net initial yield of 6.00% after purchaser costs.