Prime retail warehouse on Naas Road let to Woodie's until 2029 has guide price of €26.5m
Agents Savills are guiding a price of €26.5m for a prime retail warehouse let to Woodie's DIY on the Naas Road.
The unit, which is let in its entirety to Woodie's DIY Ltd on a long lease until November 2029 (12.5 years unexpired) extends to approximately 5,693 sq m (61,277 sq ft) and presents a low-risk investment opportunity to interested parties.
The current passing rent is €1,922,769 per annum which is subject to five-yearly, upward-only rent reviews. The lease is guaranteed by Woodie's' parent company, Grafton Group Plc, for the duration of the term.
The guide price of €26.5m reflects an attractive initial yield of 6.95pc.
The property is situated on a large site that extends to approximately 4.60 acres and provides ample surface car parking.
The site benefits from extensive frontage onto the Naas Road and Nangor Road and is located in close proximity to the M50 interchange, which provides access to all arterial routes. In addition, the Red Cow Luas stop is situated approximately 750 metres from the property.
The immediate area is well known for its retail and light industries. Apart from Woodie's, other nearby occupiers include Harris Commercial Vehicles, McDonald's, Royal Liver Retail Park, FBD, The Red Cow Hotel, alongside a number of car dealers and home furnishings suppliers.
Commenting on the opportunity the Naas Road premises presents, Dessie Kilkenny, Director of Investments at Savills, said: "Due to the exceptional covenant and the collectable income to expiry in 2029, alongside strong growth in hardware retail sales (+6.2pc from 2015) and an increase in housebuilding, we anticipate a strong level of interest in this property".
As an international distributor of building materials and related activities, the Grafton Group is ranked number one in Ireland for DIY retailing. The Group currently trades from 35 stores nationally under the Woodie's brand. Grafton Group Plc reported a turnover of Stg£2.5bn (€2.88bn) in 2016, up 13pc from 2015.
Grafton's retail arm - which trades as Woodie's DIY - performed strongly, posting a 5.6pc increase in revenue to Stg£157.1m on a constant currency basis. Operating profits at the chain were 91pc higher at Stg£7.3m on a constant currency basis.
Its merchanting business here - which operates under Chadwicks and Heiton Buckley - posted revenue of Stg£347.7m last year, a 12pc increase on a constant currency basis. Operating profits at the unit rose 27pc to Stg£27.1m on a constant currency basis.
The growing strength of the group's Irish business, and its operations in Dublin specifically was further underlined with the announcement of plans to open three new branches in the capital.
Two Chadwicks Express branches offering a full range of building products and a Plumb Centre and a Sam Hire facility are planned for Turvey in north Dublin and East Wall Road in the Dublin docklands, while a specialist heating and bathroom branch trading under the Davies brand is set to open in the south Dublin suburb of Sallynoggin.
In the case of Woodie's Naas Road premises, Dessie Kilkenny believes prospective investors will be attracted to the global income collected over the unexpired term (12.5 years) of the lease relative to their initial outlay.