Popular Irish retail park hits the market for €28m
One of Ireland’s most established retail parks comes to the market today through the launch of CityEast Retail Park, Limerick. Dessie Kilkenny and Brendan Delaney of Savills are seeking offers in excess of €28 million for the retail park which is conveniently located on the Ballysimon Road just off the M7 motorway and 4kms south east of Limerick City.
The immediate area is an established commercial location with Garryglass Industrial Estate, Delta Retail Park, Eastway Business Park, East Point Retail Park, Monaclinoe Industrial Estate and Crossagalla Industrial Estate all located on the Ballysimon Road. While the offices at City East Plaza directly opposite the park are home to the global financial intuition, Northern Trust.
CityEast Retail Park, provides secure long-term income with an attractive WAULT of c. 9.4 years, offering investors the opportunity to acquire a retail product of scale, and to tap into Ireland’s improving consumer sentiment and strongly performing bulky goods retail sector.
Dessie Kilkenny of Savills commented: “Every dial on the retail economy dashboard is now pointing in a positive direction. On the back of improved disposable incomes and rising house prices / Home Renovation Incentive (HRI) scheme there has been big gains in the bulky good sub-indices with the likes of furniture, electrical and hardware all enjoying strong growth in volume sales. CityEast Retail Park presents investors with the opportunity to capitalise on this retail recovery and gain a foothold in one of the Irelands most exciting cities which is currently undergoing a transformation and significant investment under the Limerick 2030 plan”.
CityEast Retail Park was constructed by John Sisk & Son and completed in 2006. It comprises two detached blocks extending to a total area of 16,607.8 sq m (178,764 sq ft) with 525 free surface car parking spaces for customers.
The opportunity also includes the benefit of two separate planning permissions, which are live, but construction has not yet commenced. The planned developments are for a coffee pod extending to approx. 244 sq m (2,626 sq ft) and an additional unit at the east end of the detached B&Q unit for a further 1,427 sq m (15,360 sq ft).
The retail park has an exciting tenant line-up including B&Q, Harvey Norman, Halfords, Home Store + More, EZ Living, Home Savers and Maxi Zoo. The anchor unit is let to B&Q who successfully exited examinership in 2013. As part of this process the passing rent was almost halved at that time, which presents an excellent opportunity for rental growth in the medium term.
The current rent-roll stands at more than €2.3m per annum with additional income potential in the form of turnover top-ups and future development opportunities at the scheme.
Savills is marketing the property at a guide price of €28million which equates to an income yield of 7.58% after standard purchasers’ costs of 8.46% are deducted.
The tenants will not be affected by the sale.