€3.1m sought for Citywest warehouse

A Citywest warehouse with a strong covenant is quoting €3.1 million through William Harvey & Co.

Leo Laboratories Ltd, an international pharmaceutical company specialising in skincare, is renting the property at Magna Business Park on a 10-year full repairing and insuring lease.

The rent of €185,000 is subject to review in year five while the tenant also has a break option after five years, which is subject to providing the landlord with at least 12 months’ prior written notice and paying a penalty equivalent to nine months’ rent.

This high bay warehouse and distribution centre comes with ancillary offices and staff facilities. The warehouse has a clear internal height of 10 metres, three dock levellers and a large grade level loading door. Warehouse racking and mezzanine floors belong to the landlord, but are included in the tenant’s repairing obligations of the lease.

The two-acre site offers plenty of car parking space and is much larger than normal for a building of this size so there may be potential to extend (subject to planning permission).

Leo Pharma, the parent company of Leo Laboratories Ltd and guarantor of the lease, had 4,813 employees as of December 2015 and total assets of around €4.16 billion.

The asking price equates to a net initial yield of 5.7 per cent after allowing for standard purchaser’s costs of 4.46 per cent.