Trophy site hits market with a €4m price tag

A retail, office and residential block opposite University Hospital Galway has come on the market with a price tag of €4 million.

‘Geata an Eolais’ on the corner of University Road and Newcastle Road is currently producing an overall rental income of €413,220 per annum, which equates to an income yield of 9.48% after standard purchaser costs.

The building was named ‘Gate of Knowledge’ in recognition of former UCG President Liam Ó Broin, who once lived in a house on the site.

It comprises a three-storey over basement mixed-use development which extends to 16,444 sq. ft.  The sale is being handled jointly by Colm O’Donnellan of O’Donnellan & Joyce Auctioneers and Paul Callanan of Savills.

Mr O’Donnellan told Tribune Property: “The property is situated on a high profile pitch at the corner of University Road and Lower Newcastle Road, one of Galway’s busiest thoroughfares.“

Bank of Ireland is the primary tenant in the building, with a rent of €343,000 and seven-and-a-half years unexpired on the lease. The bank is sub-letting to Tesco express.

The first floor accommodation offers a modern office suite which is currently vacant and provides the purchaser with the opportunity to increase returns in the future. The second floor features 4 luxury two-bed apartments that are fully let and generate €52,800 per annum.

The rooftop area houses a telecom mast and is currently leased by O2 & Meteor with a rental income of €11,000 per annum.  The basement area provides car parking facilities for up 36 cars, which is currently achieving €6,120 per annum.

“This is a gilt-edged high profile mixed-use investment opportunity which will appeal to a wide range of investors given the attractive return on offer.

“Given the strength of covenant associated with the current income profile and excellent asset management opportunities, we anticipate a strong level of interest,” said Mr O’Donnellan.

■ For further information, contact O’Donnellan & Joyce on 091 564212 or Savills on 01 6181418.