A tranche of retail park investment units in Co Longford is being offered for sale with a €6.75m guide price. Selling agents TWM say this price reflects an attractive net initial yield of 8.45pc off the rent of €627,036 per annum.
The property comprises eight units in three blocks at the N4 Axis Centre in Longford. Three of the units are let to Homestore & More, Maxi Zoo and Argos – the anchor occupiers at the retail park.
The eight have combined floor areas totalling 6,791sqm (73,098sqft). Each of the units is generating rent and 70pc of the total rents comes from Homestore + More, Argos, Maxi Zoo and Halfords.
The sale also includes a vacant yard which had been a garden centre and which could provide potential to add value to the investment. This yard is currently accessible only through the Homestore unit.
Because of its location on the N4, the centre is a popular pit stop for people travelling between Dublin and the west of Ireland. This is reflected in a number of other outlets at the centre – including a McDonald’s drive-thru and restaurant, Esquires Coffee, Pizza Hut and Fresh Today – which are not included in the sale and are in the possession of a number of different owners.
As the centre is on the northern side of Longford town, its furniture and furnishing outlets also attract local and regional custom.
The three blocks in the sale are being sold by Declan McDonald and Ken Tyrrell, joint receivers, PwC.
Russell Cleere of TWM commented that the N4 Axis Centre was “a good example of resilient retail that offered a diverse mix of uses which were attractive to investors”.
He added that “the guide price, at about €92.00 per square foot, is well below the replacement cost”.
He expects to see strong interest in the sale from a range of both domestic and international investors, as the N4 Axis Centre has “an excellent profile and accessibility for both Longford town and the N4/N5 junction”.
The N4 also connects with Sligo and the north west and the N5 with county Mayo, thus generating large volumes of traffic past the centre.
The centre was developed in the mid-2000s and provides a mix of retail, retail warehousing, office space, a gym and food and beverage operators.