Orion Capital Management and Quadrant Estates have secured a 47% premium on the sale of Ireland’s largest cinema less than a year after buying it.
The partners have sold the 140,000 sq ft Cineworld Complex in Parnell Street, Dublin, for €33.8m (£26.5m) – a 5.8% yield – to Standard Life Investments.
The price reflects a €10.8m uplift on their April 2014 purchase of the complex for €23m and follows the agreement of a new 25-year lease at a rent of €1.9m pa.
The development comprises a 17-screen cinema – including the largest Imax screen in Ireland – spread over four levels with a bar and concessions.
The property also has a basement level of more than 16,000 sq ft, which is let to themed entertainment attraction Nightmare Realm on a 10-year lease at €70,000 pa.
The cinema’s former 3,000 sq ft entrance foyer has been converted into two restaurants, which are vacant.
Will Fulton, fund manager at Standard Life Investments, said: “Cineworld Dublin is one of the top cinemas for ticket sales in the UK & Ireland and has a long lease with fixed increases. The yield paid for this type of income shows a good discount to the UK market and we feel now is an ideal time to invest in Ireland, which is enjoying a full and continued recovery.”
Montagu Evans acted for Orion Capital Management and Quadrant Estates; JLL advised Standard Life.
