Real Estate Investment in AIB and Kerryman Heritage Building “Vote of Confidence” in Tralee

A private MUNSTER investor paid 1.5 million euros for a historic building in downtown Tralee, which houses The Kerryman newspaper, an AIB commercial bank and three apartments.

Achieving a yield of around 11%, the new owner of 9-10 Denny St secured the three-story Georgian period building that previously housed the National Bank of Ireland (later the Bank of Ireland) from a private investment consortium which, in turn, bought it about a decade ago, after the banks and real estate crashes.

9 10 Denny Street Tralee zerial view with apartments to the rear

The building – a listed property built in the early 1800s, on a very unspoiled Georgian streetscape laid out in the early 19th century on the grounds of Tralee Castle – was sold by Paul Stephenson of Sherry FitzGerald Stephenson Crean (SFSC), had carried a € 1.3 million price guide, but sold for a higher amount, likely to be close to 1.5 million euros.

Apartments at the back of 9-10 Denny Street Tralee earn € 29,400 per year
Apartments at the back of 9-10 Denny Street Tralee earn € 29,400 per year

It has a total rental income of € 159,400, of which € 29,400 per year is from three modern, good quality two-bedroom apartments built at the back in the 2000s, and Mr Crean says’ this is considered a vote of confidence in downtown Tralee.

“For an investor to buy a property of this size in the downtown core is a fantastic indication of Tralee’s dynamism,” he added.

The Kerryman, who had moved to the town’s ground floor property from an industrial estate in Clash is on a 20-year lease from June 2007, with a current rent of € 60,000 per year, with five-year reviews, while AIB is on a 20-year lease on the first and second floors, from April 2008 paying € 70,000 per year, also with five-year reviews and the leases have a termination option. 10th year.

AIB uses the building primarily for commercial banking operations, with its main commercial presence at the junction of Denny St with 1/2 Castle St.

Extensive architectural studies have been carried out on the history and future of the beautiful streetscape of Georigan where many buildings were initially private family townhouses before moving into hotel, office and other commercial uses, such as in amalgamation of nos. 9 and 10.

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