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'Attractive' portfolio of 18 retail units up for €5.75m

An investment portfolio of 18 retail units at Belgard Square West in Tallaght, Dublin 24, is for sale with a €5.75m guide price.
written by QRE Editor  /  14 Nov 2019

An investment portfolio of 18 retail units at Belgard Square West in Tallaght, Dublin 24, is for sale with a €5.75m guide price.

Bryan Garry of sales agents QRE says that based off a net operating income of €672,096 per annum, the quoted price equates to a net initial yield of 10.63pc allowing for standard purchaser's costs of 9.96pc. "It also reflects an attractive capital value of approximately €117 per sq ft," he added.

All located on the ground floor, the units range in floor area from 775 sq ft to 15,000 sq ft and extend to about 49,000 sq ft in total.

All own door units fronting onto public footpaths, some of them face onto the public car park at The Square Shopping Centre and these include Euro Giant, Boyle Sports and Smiles Dental. These three premises generate more than 70pc of the rent and the Euro Giant store is sub let from Musgraves, whose lease with the landlord runs until December 2030.

There are currently five vacant units within the scheme, totalling about 9,706 sq ft. Mr Garry says these could provide an incoming purchaser with the ability to grow the rental income by about €195,000 and substantially enhance their return with a potential net reversionary yield in the region of 14pc.

Shane McCarthy, of KPMG, is the vendor as receiver over the assets of Belgard Square Co-Ownership, which purchased the units from the developer Shelbourne Developments headed by Garrett Kelleher. Shelbourne developed Belgard Square West, including 370 residential units and in excess of 100,000 sq ft of mixed retail, leisure and restaurant space and these generate immediate footfall for the retail units.

Last year it is believed that efforts were made to seek an off-market sale of the 18 retail units but the price was more than €8m.

In addition to the retail units facing The Square, other units face onto Cookstown Way. The development is adjacent to the Tallaght Luas Stop, and close to the Civic Theatre, county council offices and library and also convenient to Tallaght Hospital.

According to QRE, the portfolio is expected to be of interest to high net worth individuals, family offices and focused funds, which have experience in asset management and wish to avail of the net initial yield which compares favourably with current low interest rates.

"In addition to this, the term certain income and capital value, which is significantly below replacement cost, is expected to attract opportunistic investors," Mr Garry says.

During the property boom, Shelbourne undertook a number of projects in Dublin and overseas including the redevelopment of the former Virgin Megastore site on Aston Quay.

Mr Kelleher also sought to develop the Spire building, as one of the tallest buildings in Chicago, USA.

 

Press Release - Donal Buckley - Irish Independent