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Description
Savills is pleased to present 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.
Situated close to 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.
Tenant break option on the tenth anniversary of the lease, therefore offering a minimum unexpired lease term of approximately 8.5 years.
Lease guaranteed by the US parent company Skechers USA Inc until the fifth anniversary of the lease.
Current passing rent the higher of €310,000 per annum or 10% of turnover.
Annual fixed rental increases up to €350,000 in the fifth year of the term, followed by open market reviews.
Total accommodation of 522.61 sqm (5,625 sqft) including a ground floor retail floor plate of 170.25 sq m (1,833 sq ft).
Freehold for sale by private treaty.
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.
We are quoting a price of €4,950,000, subject to contract, representing a net initial yield of 6.00% (after typical purchaser’s costs of 4.46%).
Location
Henry Street is Dublin’s premier retail high street. 4 Henry Street occupies an excellent retail pitch on the south side of Henry Street close to the junction with Upper Liffey Street and Mary Street. The property is located directly opposite Debenhams department store and the ILAC Centre which extends to over 27,200 sqm. Retail pitches on Henry Street are in strong demand and the street boasts leading domestic and international retailers including Arnotts, Zara, Dunnes Stores, Boots and HMV. The west end of Henry Street merges with Mary Street, which boasts Marks & Spencer, Penneys and the 30,660 sqm Jervis Shopping Centre which includes, Forever 21, River Island and H&M.
Description
The property comprises a mid-terrace four-storey over basement commercial building extending to approximately 522.61 sqm (5,625 sqft) with excellent frontage to Henry Street of approximately 5.25 metres.
The building currently comprises retail accommodation at ground floor level, providing a regular retail floor plate fitted out to a high standard, with storage and delivery area at the rear of ground floor. The basement and upper floors provide storage, office, canteen and WC facilities. Although the tenant currently trades out of the ground floor only, the property provides for retail use from both ground and basement levels, with total retail accommodation of approximately 304 sqm (3,273 sqft).
Tenancy
The entire is let to Shuz 4 U Ltd t/a Skechers on a 15-year full repairing and insuring lease from 1st September 2010, with a break option at year 10. The rent is stepped on the following basis:
Year 1 €300,000 or 10% of turnover, whichever is the greater
Year 2 €310,000 or 10% of turnover, whichever is the greater
Year 3 €315,000 or 10% of turnover, whichever is the greater
Year 4 €335,000 or 10% of turnover, whichever is the greater
Year 5 €350,000 or 10% of turnover, whichever is the greater
Rent reviews are on a 5-yearly basis to open market rent.
The lease is guaranteed by Skechers USA Inc up to the earlier of:
(i) the fifth anniversary of the term commencement date
(ii) the date of an assignment of the lease
(iii) the acceptance by the landlord of a surrender by the tenant of its interest in the lease.
Covenant
Shuz 4 U signed an exclusive agreement with Skechers USA Inc in 2010 to open and operate Skechers-branded retail stores throughout Ireland. Skechers manufactures and designs branded contemporary casual, classic, outdoor, comfort and sports footwear for men, women and children.
The guarantor, Skechers USA Inc, would be considered a very strong covenant, and have a Dun & Bradstreet credit rating of 5A1, which represents a financial strength of over $50 million. In the company’s interim consolidated statement dated Sep 30th 2011, the company had cash of $247,974,000, retained earnings of $590,190,000, and sales of $1,322,768,000.
Tenure
Freehold
Contact Agent
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.
Situated close to 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.
Tenant break option on the tenth anniversary of the lease, therefore offering a minimum unexpired lease term of approximately 8.5 years.
Lease guaranteed by the US parent company Skechers USA Inc until the fifth anniversary of the lease.
Current passing rent the higher of €310,000 per annum or 10% of turnover.
Annual fixed rental increases up to €350,000 in the fifth year of the term, followed by open market reviews.
Total accommodation of 522.61 sqm (5,625 sqft) including a ground floor retail floor plate of 170.25 sq m (1,833 sq ft).
Freehold for sale by private treaty.
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.
We are quoting a price of €4,950,000, subject to contract, representing a net initial yield of 6.00% (after typical purchaser’s costs of 4.46%).
Location
Henry Street is Dublin’s premier retail high street. 4 Henry Street occupies an excellent retail pitch on the south side of Henry Street close to the junction with Upper Liffey Street and Mary Street. The property is located directly opposite Debenhams department store and the ILAC Centre which extends to over 27,200 sqm. Retail pitches on Henry Street are in strong demand and the street boasts leading domestic and international retailers including Arnotts, Zara, Dunnes Stores, Boots and HMV. The west end of Henry Street merges with Mary Street, which boasts Marks & Spencer, Penneys and the 30,660 sqm Jervis Shopping Centre which includes, Forever 21, River Island and H&M.
Description
The property comprises a mid-terrace four-storey over basement commercial building extending to approximately 522.61 sqm (5,625 sqft) with excellent frontage to Henry Street of approximately 5.25 metres.
The building currently comprises retail accommodation at ground floor level, providing a regular retail floor plate fitted out to a high standard, with storage and delivery area at the rear of ground floor. The basement and upper floors provide storage, office, canteen and WC facilities. Although the tenant currently trades out of the ground floor only, the property provides for retail use from both ground and basement levels, with total retail accommodation of approximately 304 sqm (3,273 sqft).
Tenancy
The entire is let to Shuz 4 U Ltd t/a Skechers on a 15-year full repairing and insuring lease from 1st September 2010, with a break option at year 10. The rent is stepped on the following basis:
Year 1 €300,000 or 10% of turnover, whichever is the greater
Year 2 €310,000 or 10% of turnover, whichever is the greater
Year 3 €315,000 or 10% of turnover, whichever is the greater
Year 4 €335,000 or 10% of turnover, whichever is the greater
Year 5 €350,000 or 10% of turnover, whichever is the greater
Rent reviews are on a 5-yearly basis to open market rent.
The lease is guaranteed by Skechers USA Inc up to the earlier of:
(i) the fifth anniversary of the term commencement date
(ii) the date of an assignment of the lease
(iii) the acceptance by the landlord of a surrender by the tenant of its interest in the lease.
Covenant
Shuz 4 U signed an exclusive agreement with Skechers USA Inc in 2010 to open and operate Skechers-branded retail stores throughout Ireland. Skechers manufactures and designs branded contemporary casual, classic, outdoor, comfort and sports footwear for men, women and children.
The guarantor, Skechers USA Inc, would be considered a very strong covenant, and have a Dun & Bradstreet credit rating of 5A1, which represents a financial strength of over $50 million. In the company’s interim consolidated statement dated Sep 30th 2011, the company had cash of $247,974,000, retained earnings of $590,190,000, and sales of $1,322,768,000.
Tenure
Freehold
Interested in this Commercial Property?
Contact the Estate Agent about: Henry Street 4, Dublin 1
Savills Commercial Investments
- Savills Commercial Investments
- 32 Molesworth Street Dublin 2
- Tel: +353 (0) 1 618 1300
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Mortgages
Finance this property from €384.43 per month per €100,000 borrowed with Bank of Ireland*
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*Based on Mortgage for 35 years @ 3.0% APR Variable. For illustrative purposes, does not constitute a contract.
WARNING: YOUR HOME IS AT RISK IF YOU DO NOT KEEP UP PAYMENTS ON A MORTGAGE OR ANY OTHER LOAN SECURED ON IT.