Nenagh Retail Park expected to fetch over €2.6m
Published 28/04/2016 | 02:30
Savills is quoting €2.6m for Nenagh Retail Park in Co Tipperary.
The scheme comprises seven, purpose built retail warehouse units at ground floor level with additional first floor space. In total the retail park scheme extends to approximately 158,000 sq ft with over 400 surface car parking spaces.
The sale also includes two neighbouring sites totalling approximately 3.1 acres.
Those sites are likely to offer future development potential, and a light industrial unit to the rear of the retail park. The larger of the two development sites, which extends to approximately 2.4 acres, was originally earmarked as a nursing home facility while the smaller site of 0.7 acres was designated for a car showroom as part of the original master-plan for the scheme.
The property is being sold on the instructions of receiver Duff & Phelps.
The retail park is anchored by Woodies DIY on a lease guaranteed by parent company Grafton Group which account for over 43pc of the current total rental income of €240,000. This is set to increase to over €290,000 as letting terms are now agreed on one of the currently vacant retail units. Woodies lease is not due to expire until 2031 with their next break option in five years' time. The owner-occupied Aldi store situated next to Woodies has also increased footfall to the scheme. Other occupiers within the retail park include Expert Electrical, World of Wonder, Jump N Gyms and Slattery's Tiles.
Kevin McMahon of Savills, who is handling the sale, commented: "the property is significantly below replacement costs and offers ample scope to increase revenue streams through leasing the remaining vacant units, re-gearing existing tenancies along with future development on the two sites."
"Pricing at the guide level offers an income yield of approximately 9pc today which is set to increase to over 10pc as terms are currently agreed to lease one of the vacant retail warehousing units," he added.
Nenagh is the largest county town in North Tipperary and has evolved into an important focal point due for business and commerce.