Sunday 16 June 2019

Tesco building in Gorey offered for investment sale

Fintan Lambe

A property portfolio of four supermarkets, including the Tesco store in Gorey, has gone on the market with an asking price of €49 million.

The supermarkets were funded by Israeli property tycoon Igal Ahouvi during the financial crisis, and he has now decided to cash in his investment, and is understood to be looking for fresh opportunities in the Irish property market.

The sale is being handled by agents TWM. The Gorey store is the largest of the four supermarkets included in the portfolio.

The others are Tesco in Roscrea and Aldi in Cahir, Co Tipperary, and Aldi in Sandyford in Dublin, They do not have to sell as a single package.

Tesco in Gorey is the largest of the four supermarkets extending to 87,289 sq.ft. on an overall site of 8.5 acres. The site has 606 car parking spaces, and TWM says the store is further enhanced by the completion of a new Applegreen service station with a drive thru Burger King located at the entrance.

The eco friendly building is of timber frame construction with a metal deck roof and a mix of a thermowood cladding and glazed facade.

Tesco has a 25-year lease on the supermarket dating from January 1, 2014, with 11.33 years guaranteed. There are tenant break options in 2029 and 2034.

The building has a current rent of €1.57 million a year. This accounts for 46.04 per cent of the income from the entire investment.

The total current passing rent for the four properties is €3.41m per annum, and the net initial yield of 6.66 per cent which has the benefit of uplifts linked to the Consumer Price Index.

Gorey Guardian