Two Tesco stores are brought to market
Two Tesco supermarkets have been brought to the market this week. One of them in Gorey, Co Wexford, is being sold with the benefit of vacant possession and has a €2.5m price tag.
The other, in the border city of Newry, Co Down, is being sold as an investment with a £27.3m (€31.8m) price tag. This level would reflect a net initial yield of 5.5pc.
The timing appears to be purely coincidental, as Tesco is the vendor for the Gorey property while a Northern Ireland-based developer is selling the one in Newry.
The Gorey store is located on the Courtown Road, just north of the town centre from which Tesco is due to relocate to a larger site at Ramstown Lower within the town later this year.
The Courtown Road building extends to 4,352sqm and occupies a 3.2 acre site which is zoned town centre, permitting a variety of uses. It has 72 metres of frontage to the Courtown Road.
Paul Fahey of Bannon says the current building layout may lend itself to subdivision into three or more units subject to configuration and planning. The carpark has 261 spaces. The site has strong linkage to the town centre via Esmonde Street.
Adjacent occupiers include Aldi, Apple Green and Gorey Community College, one of the largest community colleges in the country with over 1,600 students. Gorey has a catchment population of 24,465 people. Other retailers in the town include Tesco, Dunnes and Lidl.
"Tesco have traded successfully on the site for over 17 years and are due to relocate to a new 7,800sqm store, which is approximately double the size of their existing footprint.
"The existing building offers potential purchasers a variety of options to enhance the current value," Fahey added.
CBRE are the agents for the Newry supermarket which extends to 93,248 sq ft (8,663.1sqm) on a 5.20 acre site. The property currently produces a net income of almost £1.59m a year, reflecting £17 (almost €20) per sq ft. Its lease has 24.9 years to run and benefits from five yearly RPI compounded uplifts, capped and collared at 1pc to 3pc.
The freehold property provides 531 parking spaces. Completed as recently as May this year, it has been fitted out to a high specification.