Retail centre near Dublin airport for €8.75m

A neighbourhood shopping centre opposite Airside Retail Park near Swords, Co Dublin, and going for sale today, will give new owners an initial return of 9.08 per cent.

Joint agents CBRE and Bannon Commercial are seeking more than €8,750,000 for Boroimhe Shopping Centre off the original N1 road in a densely populated area with an immediate catchment of over 5,000 residents.

The centre, on the Dublin side of Swords, was developed in 2006 by brothers Mick and Tom Bailey of Bovale Developments who built more than 1,300 houses and apartments in the immediate area. It is at the junction of Forest Road and the Link Road and serves many of the residents of Rivervalley, Ridgewood and Rathingle, all within little more than a kilometre.

It also benefits from close proximity to Dublin Airport which has 14,000 employees.

Rental income
The Boroimhe complex is producing annual rents of €829,570 with the main anchor tenant, a SuperValu franchisee, contributing 44.6 per cent of the overall rent (€370,000) for a store measuring 1,260 sq m (13,562 sq ft).

The supermarket trades well and has more than 18 years to run on its lease.

A further 25.65 per cent of the rental income (€212,785) comes from a medical centre and pharmacy.

In addition to the medical centre, there is a fitness centre run by Verve and a crèche operated by Little Apple, bringing the overall area to 3,055sq m (32,883sq ft) .

There are six further retail units including MacNamara's Pharmacy, Bambury Bookmakers, Scaramousse, Two Spots Coffee and a Pizza Hut.

Investors looking at the centre will be interested to know that the overall weighted lease term has more than 17 years to run.

The joint selling agents are predicting strong interest in the centre not only because of its full occupancy and strong location but also because retail assets of this kind have been slow to reach the market.

The agents say that, of the €970 million spent this year on property investments, only 8.7 per cent of it was put into retail properties.

“While there are strong sentiments from investors looking for suitable retail investments, the spend figures underline the lack of good quality retail assets that have come on the market,” the agents said.

The Bailey brothers are also looking for a buyer for two new drive-through restaurants developed alongside Charlestown Shopping Centre in Dublin 11 and rented by McDonald’s and KFC.

The investment is expected to make around €3.9 million.