Galway store sells for €702k
A Galway-based private investor has purchased the city centre Barratts footwear retail store in a sale and leaseback deal with the UK chain which values the store at €702,500. Located in a prime position within Eyre Square Shopping Centre, its accommodation extends to 116sqm of ground floor space along with an additional 44sqm of first floor space.
Unit 208A Eyre Square is let to Barratts shoes at a rent of €70,000 a year on a new 15-year lease with a break in year 10.
Gareth Shiells of selling agents, Savills who handled the sale, said: "The price reflects a net initial yield of 9.54pc.
"There was a high level of interest in the investment, particularly from local investors, and the sale shows there is demand for regional retail investments let to strong brand name tenants, particularly at this sort of price level.
"This is one of the city's busiest retail locations and the unit is immediately adjacent to Penneys, the centre's main anchor and footfall driver."
Barratts' Irish business is performing very well and its like-for-like sales growth is likely to have enhanced the attractions of the covenant for investors.
Since its repositioning of its Barratts brand and product mix, it is reckoned to have suited the Galway demographic with its vibrant youthful population. Penneys, as arguably Europe's leading value brand, also proves an attractive retail neighbour generating footfall for the store.