NAMA launches Irish retail parks portfolio seeking €110m

NAMA has launched the sale of the Parks portfolio, comprised of five retail parks throughout Ireland, through investment sales agents CBRE and DTZ Sherry FitzGerald with a guide price of €110m.

Approximately 60% of the value of the Parks portfolio, or €66m based on the guide price, is derived from the sale of a significant part of Carrickmines Retail Park known as Phase 1, The Park.

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The four other assets are:

  • M1 Retail Park in Drogheda;
  • Lakepoint in Mullingar;
  • Poppyfield Retail Park in Clonmel; and
  • Four Lakes Retail Park in Carlow.

Based on the €110m guide price, and an annual portfolio rent roll of just under €9.4m, the net initial yield would be 8.4%.

In a statement issued this morning, CBRE wrote that the Parks portfolio is expected to draw interest from private equity firms and, given the yield compression experienced in the Dublin office market, also REITs and funds drawn by the portfolio’s asset management opportunities.

The Park in Carrickmines is south Dublin’s premier retail park. Phase 1 of the Park offers 203,170 sq ft of retail warehouse space and benefits from key tenants such as Woodies, PC World, Next and Halfords. The scheme generates a rental income of approx. €4.4m per annum and has a low vacancy rate of 7.6%.

Phase 2, which is not included in the sale, also includes a strong tenant line up to include household names such as TK Maxx, Heaton’s, Mothercare & Harvey Norman.

M1 Retail Park, Drogheda is approximately 30 minute drive north of Dublin and comprises approximately 258,188 sq. ft. of quality mixed use space to include retail warehousing, offices, leisure and restaurant facilities.

M1 Retail Park also has development potential with adjacent zoned lands of approximately 31 acres which are included in the sale. The M1 currently generates a rent roll of approximately €2.8m per annum with 35% of the income generated from national brands such as Woodies DIY, Smyth Toys and Heaton’s.

Located in Mullingar with 200 meters frontage to the N4, (the main Dublin to Sligo Road) is Lakepoint Retail Park.  Built in 2001, Lakepoint was the first retail park to be developed outside Dublin and provides over 85,000 sq. ft. of space with the opportunity to develop a 2,000 sq ft restaurant/coffee kiosk space in the existing car park.

Approximately 75% of the park is let, thus providing an opportunity for additional income potential. Situated at the entrance of the Park is IMC Cinemas which significantly adds to the overall footfall of the retail park.  Lakepoint is producing an annual rent of approximately €772,000 per annum and has a weighted average unexpired lease term (WAULT) of 11.5 years.

Poppyfield Retail Park, located in Clonmel, the administrative capital of the south midlands in Ireland.  The anchor tenant is Woodies DIY along with Supervalu occupying circa 42,000 sq ft and 32,000 sq ft, respectively. Other tenants include Harry Corry, DID Electrical, Carphone Warehouse, Meteor Mobile and Sam McCauley Chemist.  The current rent roll is approximately €1.1m per annum.

Finally, Four Lakes Retail Park is located in Carlow, one of the largest urban areas in Ireland, with a population of 23,000.  The Retail Park is ideally located on Dublin Road, one of the main access routes to the M9 motorway.  The park was constructed in 2008, offering 113,731 sq ft of retail warehouse accommodation.

A drive-thru Supermacs is located at the entrance of the park adjacent to Maxi Zoo and PC World. The scheme is generating approximately €323,521 per annum and has a WAULT of 10.25 years.

While a number of units within the development are currently unoccupied the park enjoys a high profile position with significant frontage onto the Dublin Road.  Some of the unoccupied units could suit alternative uses subject to obtaining the necessary planning consents.