Friday 19 July 2019

Pharmacy could yield over 8pc for €1.4m investment

Hickey’s Pharmacy in Drogheda has a 15-year lease
Hickey’s Pharmacy in Drogheda has a 15-year lease
Donal Buckley

Donal Buckley

A pharmacy investment with an initial yield of 8.3pc has been brought to the market by agents Quinn Agnew.

The Drogheda property extends to 6,650 sq ft of which about 5,500 sq ft is let to Hickey's Pharmacy Limited, the holding company for the pharmacy chain, under a 15-year lease from February 2019 at an annual rent of €130,000. Its guide price is more than €1.45m.

Located at 10/11 West Street, or Drogheda's high street, this street is also known as Drogheda's Golden Mile because of the many successful businesses that located there. During the boom, AIB sold one vacant property on the street for €7.5m and another for €8m.

The ground floor shop, rear stock rooms and yard areas are let to Hickey's. Its holding company has been trading since 1995 and employs more than 350 people in 37 stores throughout the country.

Under the terms of the lease, Hickey's is responsible for all outgoings and repair and maintenance of the demise and contribute pro rata to the repair of the roof over the offices and insurance of the building.

The entire building extends to about 505.4 sq m (6,650 sq ft) and selling agent Manus Agnew points out that its covenant presents potential investors with a secure tenant for 15 years.

In addition there is an opportunity to increase the rental income by letting the vacant self-contained offices on the upper floor which extend to about 1,150 sq ft.

He says it could produce €10,000 to €15,000 a year and increase the yield to about 9pc.

Drogheda is the sixth most populous urban areas in Ireland with a population 40,956, according to the 2016 Census, and it showed a population increase of 6.2pc between 2011 and 2016.

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