€13m for portfolio
A retail and office complex in Stillorgan and two neighbourhood shopping centres at Kiltipper Way in Tallaght and Balgaddy, Lucan, in the Dublin suburbs are expected to sell for about €13 million when they are offered for sale later this week on behalf of Durkan New Homes.
Jeremy Walsh of agent Kelly Walsh is handling the sale of the three investments, currently producing more than €1 million in rental income, which are likely to be sold in a single lot.
Also going on the market is a redevelopment site of more than an acre at Sandyford Industrial Estate, which is expected to make about €1.25 million.
Last July, the High Court awarded Durkan New Homes compensation of €31.2 million in their action against the State as a result of a 2006 property deal that failed to go through.
The damages were paid directly to Nama which had acquired a loan relating to the deal as well as a number of other bank debts incurred by the company.
Stillorgan Plaza, a two-storey retail and office complex over a basement car park, dates from the 1980s and is located on Lower Kilmacud Road, opposite Stillorgan shopping centre.
The complex is producing a rent roll of €560,875 and this figure is expected to increase to at least €800,875 in 2014, according to the agent.
The centre was recently redeveloped to accommodate a new Lidl store complete with a travelator from basement level as well as two further retail outlets. Lidl pays rent of €475,000 for the 1,624sq m (17,480sq ft) under a 25-year lease with a break option in 2021.
Sungard Global Services has a commitment to rent 1,079sq m (11,614sq ft) of office space until 2023 though it is attempting to sublet about half of the first floor area.
No break option
The annual rent of €255,000 has been reduced to €205,000 per annum for two years from last July.
Bookmaker Paddy Power has just rented a 185sq m (1,991sq ft) shop at €70,875 per annum with no break option for 10 years. Another retail unit extending to 138sq m (1,485sq ft) is vacant.
The AIB bank branch and the Odeon Cinema also form part of the complex but are in separate ownership. The bank has use of 16 of the 188 car-parking spaces on the site.
Marfield Neighbourhood Centre in Tallaght is producing rents of €288,200 per annum, most of them from Astonbond Ltd trading as Euro Spar. The tenant’s original rent of €340,000 has been abated to €221,000. A section of the premises sublet to a takeaway food business is producing €37,000 which is paid to the landlord. The complex has three vacant retail units.
Kelly Walsh has put a valuation of €1.5 million on the third retail complex, Rosse Court Neighbourhood Centre at Balgaddy, Lucan, which has a rent roll of €198,000 from eight outlets. The anchor, Gala Supermarket, is paying a rent of €52,000 per annum.
A separate buyer is likely to emerge for the high profile site of 0.41 of a hectare (1.02 acres) at Arkle Road in Sandyford which is surrounded by a large number of high- rise office blocks.
The building height limit in the area is six storeys. There are two warehouses and two yards on the site which may be sold in separate lots.