Grafton Street property investment at €3.4m offers 6.48% net initial yield
With more and more of the buildings on Dublin’s most sought-after retail stretch, Grafton Street, acquired by wealthy Irish families over recent years, the sale of a prime investment there is expected to see competition from a number of parties. Located at the junction with Nassau Street, 2 Grafton Street and 50 Nassau Street are being offered to the market by agent Savills at a guide price of €3.4 million. The property is being sold on behalf of a fund managed by Lanthorn, the privately owned real estate investor and asset manager led by former Davy Real Estate CEO David Goddard. Goddard established Lanthorn following the acquisition in November 2024 of the Davy Group’s property investment unit and its €1.6 billion portfolio of assets. Those assets included a controlling stake in Nutgrove Shopping Centre along with numerous other retail schemes, including Dublin’s St Stephen’s Green Shopping Centre.Number 2 Grafton Street and 50 Nassau Street comprise a five-storey over-basement building of 243sq m (2,615sq ft) in a prominent corner position in Dublin city centre’s foremost shopping area. READ MOREFrascati Centre in Blackrock set to hit the market with €80m price tagCosgrave family seeking €6.925m for Tesco premises on Dublin’s Parnell StreetIres Reit seeks occupiers for range of retail units at Tallaght Cross WestJD Sports opens for business at Navan Town CentreThe building is occupied by a diverse tenant mix and is anchored at street level by US-headquartered coffee chain, Starbucks, and by Claddagh Jewellers. The upper floors of the property are home to a number of office and service occupiers. The investment is currently generating total annual rental income of €242,426, and the weighted average unexpired lease term is approximately 6.5 years to break and 9.5 years to expiry. Should a sale proceed at the guide price, the new owner would stand to secure a net initial yield of 6.48 per cent after standard purchaser costs of 9.96 per cent.Grafton Street remains Dublin and Ireland’s most valued stretch for retailers, with an 18th place ranking in Cushman & Wakefield’s latest “Main Streets Across the World” report.The report, which is compiled and published annually, focuses on headline rents in 141 best-in-class urban locations across the world, which in many cases are linked to the luxury sector. It includes a global index ranking the most expensive destination in each market.[ Grafton Street nears full occupancy with 25 new store openings since 2020Opens in new window ]Recent lettings and openings along the street further reinforce its position as the leading retail destination in the country, with continued interest from global occupiers. Last year saw the arrival of a number of international brands including Kiko Milano (Italy), Mango (Spain), Lovisa (Australia), Pampling (France), Build-A-Bear (USA), Iris Galerie (France) and Subdued (Italy).Commenting on the sale of 2 Grafton Street and 50 Nassau Street, Seán Ryan McCaffrey of Savills said: “This is an opportunity to acquire a fully let high-profile investment on Grafton Street, widely regarded as Ireland’s premier retail location.”
