London property firm and McKillen agree €12.8m southside property deal
UK property giant Development Securities and a company backed by developer Paddy McKillen have completed a deal for two properties in south Dublin.
DevSecs and Mr McKillen's Clarendon Properties will pay €12.8m for the Nutgrove Retail Centre and retail units at Beacon South Quarter.
The deal is being done through a joint venture between the two companies, with both sides taking a 50pc stake in the business. The sale price equates to a net initial yield of some 6.72pc.
Beacon South Quarter is a mixed-use development made up of retail, restaurant, residential and office space, also located in south Dublin. The firms have acquired the long leasehold in respect of eight self-contained retail units within the wider scheme which are let to a number of national and local occupiers including BoConcept, Your Local Pharmacy and Roches Bobois.
In a statement, Development Securities said the occupancy rate across the eight units is 86pc and "there are a number of asset management opportunities to improve the retail offer and tenant mix".
The Nutgrove Retail Centre is a 45,000 sq ft retail park with a number of tenants including Petworld and Home Store & More.
Just over four-fifths of the centre is occupied at present.
Development Securities' executive director Matthew Weiner said the deal was "the latest in a number of acquisitions that we have made in Dublin, an important market for us in which we see further opportunities for development, trading and investment activity".
"Both of the properties today are well-located, established retail destinations that offer the potential to enhance value through proactive asset management.
"We are pleased to be working with experienced partners and together we look forward to improving the quality and experience of these retail locations," he said.
Clarendon Properties managing director Tony Leonard said his firm was "delighted to be teaming up with an experienced and active development partner".