Valeo seeks €11m in sale & leaseback of Dublin facilities
The Valeo Foods Group is set to follow up last year's sale and leaseback of its distribution headquarters in Dublin with the disposal of two further facilities on a sale and leaseback basis.
Valeo, which produces branded food products such as Odlums, Batchelors, Jacobs, Roma and Chef, secured over €25m from the sale last October to Friends First of its 230,000 sq ft warehouse and distribution facility at Merrywell Industrial Estate in Ballymount, Dublin 12.
In acquiring the property and its 9.4 acre site, the fund availed of a sale and leaseback opportunity with a 35-year lease at an overall equivalent yield of 6.2pc.
Following the successful execution of that deal, Valeo has now instructed industrial and logistics specialist agent, William Harvey, to sell facilities it owns at Broomhill Road in Tallaght, and at Westpoint Business Park in Dublin 15. The food giant expects to realise in excess of €11m from the proposed transactions.
Kevin McHugh of William Harvey expects both properties to generate strong investor interest due to the excellent tenant covenant and 12-year secure income stream in each case.
Valeo Foods Group has operations in Ireland, the UK and Continental Europe and is a market leader in snacking and sweet treats, health and wellness, baking and meal ingredients, beverages and foodservice, with annual sales of approximately €800m. Apart from the iconic household brands it has here in Ireland, internationally, the company owns market-leading brands such as Balconi (Italy), Rowse and Big Bear Confectionery (UK) and Candy Plus (Czech Republic).
In the case of the first of the Valeo facilities now being offered to the market, the selling agent is quoting a price of €8.7m for Units 78 and 79 Broomhill Road, Tallaght, Dublin 24.
Located on a large, high-profile site adjacent to the new Harvey Norman store at the junction of Broomhill Road and Greenhills Road, the property provides an initial rent of €661,487 per annum, offering the prospective purchaser a net initial yield of 7pc. The facility is subject to a 35-year lease with tenant break options after the 12th and 23rd years.
In terms of layout and specification, Unit 78 is a detached warehouse and office building that has been extended. The clear internal height of the original warehouse is 7.6m, while the warehouse extension is 10.2m.
There are six dock levellers and seven ground level doors together with two additional concertina-style doors.
Ancillary two-storey offices are provided to the front of the building. The property is used for warehousing and distribution by Findlaters, a Valeo Company.
Unit 79 is also detached, and is a modern, production and office building used in the production of coffee by Robert Roberts, another Valeo Company. The production areas have a clear internal height of 8.8m and the offices and staff facilities are well appointed.
The overall site area at Broomhill Road is 2.4 hectares (5.9 acres) and the site is zoned 'Regen' - which allows for residential, offices, hotel/hostel, housing for older people, restaurant/café, health centre, education, petrol station, etc., subject to planning permission.
In the case of the second facility being offered for sale, agent William Harvey is quoting an asking price of €2.6m for the Odlums facility at Westpoint Business Park in Mulhuddart, Dublin 15.
The property promises an initial rent of €168,920 per annum, offering the prospective purchaser a net initial yield of 6pc. The property is subject to a 20-year lease with a tenant break option after the 12th year.
The Odlums facility is a detached light industrial/warehouse and office facility on a generous, gated site within 30 seconds drive of the N3.
The warehouse, which is used currently for the packaging and storage of flour by Odlums, has a clear internal height of 8.7m. Loading access is provided by three ground-level doors. The office area comprises one administrative office, a fitted canteen, restrooms, showers and locker rooms. Externally, there is a 44m deep yard with a dock-loading platform.