By Ronald Quinlan
Wed Jun 8 2022 - 06:00
Agent QRE Real Estate Advisers is seeking a combined guide price of €3.75 million for two retail warehouse assets in Co Kildare. Located in Clane and Newbridge, the investments have both been let recently on new long-term leases to well-known tenants, and as such, offer the prospective purchaser the benefit of immediate and secure rental income.
The first asset is located on the Dublin Road in Clane, and is occupied by Choice (Multi-Home Retail Ltd). The property extends to 2,322sq m (25,000sq ft) over ground and mezzanine levels and comprises retail/warehouse space, and first-floor office accommodation. The asset is situated on a 0.6-hectare (1.61-acre) site with extensive car parking and is held under freehold title.
The entire property is let to Multi-Home Retail Limited, trading as The Choice under a 20-year full repairing and insuring (FRI) lease from May 1st, 2021. The passing rent is €200,000 per annum. There is a tenant-only break-option in year 10 subject to six months’ notice, and open-market rent reviews.
The guide price of €2,600,000 reflects a net initial yield (after standard purchasers’ costs of 9.96 per cent) of 7 per cent. Choice is an Irish-owned and managed retailer trading for more than 45 years which today operates 11 stores and two distribution centres nationwide and employs more than 300 people.
The second property comprises Units 6E & 6F Cill Dara Industrial Estate in Newbridge. The investment consists of two adjoining retail warehouse investments currently occupied by Screwfix and Crown Paints. Both units are being sold with the benefit of a new roof installed by the landlord prior to tenant occupation.
Unit 6E is the larger of the two units and comprises 612sq m (6,588sq ft) of trade-counter retail space and back-of-house warehouse space. Unit 6F extends to 195sq m (2,099sq ft) and comprises ground-floor retail warehouse accommodation, with staff ancillary space. The total area of both units is approximately 800sq m (9,000sq ft) incorporating a shared fire corridor.
Unit 6E is let to Screwfix Direct (Ireland) Ltd on a 10-year lease with open-market rent reviews at a passing rent of €52,000 per annum. There is a tenant-only break option in year five subject to six months’ notice. Unit 6F is let to Crown Paints Ireland Ltd with 10 years of term-certain income, and open-market rent reviews at a passing rent of €28,500 per annum.
The combined rent for the two assets equates to €80,500 per annum. The guide price of €1,150,000 reflects a net initial yield (after standard purchasers’ costs of 9.96 per cent) of 6.37 per cent.
Bryan Garry and Harry Byrne of QRE say: “Given the dearth of long-income opportunities in the market, we believe both investments will be of keen interest to investors seeking to take advantage of relatively new leases to extremely strong covenants, all of which are let on full repairing and insuring leases.”