| 22.3°C Dublin

Landmark Galway retail site offers prospects

Close

Offering: The landmark corner building at 1 Shop Street, Galway, is let by Three Ireland

Offering: The landmark corner building at 1 Shop Street, Galway, is let by Three Ireland

Offering: The landmark corner building at 1 Shop Street, Galway, is let by Three Ireland

Offering: The landmark corner building at 1 Shop Street, Galway, is let by Three Ireland

/

Offering: The landmark corner building at 1 Shop Street, Galway, is let by Three Ireland

Galway's retail property market continues to offer opportunities for occupiers and investors.

This week a retail investment in the heart of the city's shopping district has come to the market.

Joint agents QRE and BidX1 are guiding €1.95m for Number 1 Shop Street, a landmark corner building.

It is currently let in its entirety to Three Ireland, the telecommunications and internet service provider. Its lease is for a term of 10 years from May 2016 at a contracted rent of €160,000 per annum.

At the guide price, this reflects a net initial yield of 7.46pc after standard purchaser's costs of 9.96pc and a capital value of €443 per sq ft.

The property occupies a prominent location, at the junction of Shop Street and Abbeygate Street with considerable dual frontage onto both. Adjoining and nearby occupiers include LifeStyle Sports, Rituals and AIB.

Rising to five storeys over basement, its total floor area extends to a net internal area of about 307 sq m (3,308 sq ft) and gross internal area of 408 sq m (4,398 sq ft). It is listed as a protected structure.

The agents expect the sale will attract interest from local and international investors "drawn to the underlying strength of the tenant, coupled with the ability to acquire a landmark asset in Galway city centre".

Meanwhile, in the western suburbs, investment firm Sigma Retail Partners has announced the completion of Gateway Shopping Park Phase 2 with the first two retailers, Harvey Norman and Boots, opening their stores this month. Harvey Norman has taken a 60,000 sq ft store in the 160,000 sq ft Gateway Phase 2 extension which will double the centre's size.

As well as retail units, Phase 2 will have food and beverage units, a crèche and a gym. Other retailers will include Carraig Donn, Spraoi Early Learning and Evergreen and Esquires. A spokesperson said achieved rents ranged between €25-€40 per sq ft depending on the size, with the smaller units typically achieving the highest rents per square foot.

As much as 90pc of Phase 2 has been pre-let.

"We have only two units remaining and we are in negotiations with retailers for both of these units," she added.

Irish Independent