Israeli investor buys Gorey Tesco Extra store for €21m

A wealthy Israeli investor has bought the newly opened Tesco Extra store in Gorey, Co Wexford, for a price believed to be in the region of €21 million.

The investment will show a return of just over 7 per cent.

The purchase will bring to more than €50 million the amount spent on Irish property investments by Igal Ahouvi in recent years.

The new Tesco operation extends to 7,990sq m (86,000sq ft) and is located on an 8.6-acre standalone site adjacent to Gorey shopping centre, which is anchored by Dunnes Stores. The Tesco outlet will have more than 600 parking spaces.

Tesco will pay an initial rent of €1.56 million under a 25-year lease with a break option after 15 years.

Mr Ahouvi acquired a Tesco store in Roscrea, Co Tipperary, in 2010 for €12.5 million. In recent years his purchases have also included two Aldi stores – one on Parnell Street in Dublin's inner city and one in Sandyford, Co Dublin.

Just over a year ago he paid €5 million for a newly developed office investment on the outskirts of Navan, Co Meath, which is showing a return of 8.8 per cent and will have an average yield of 9.7 per cent over the life of the lease. The two-storey building is used as the Irish headquarters of Generali International, an Italian-based global financial services group.

Sean O’Neill of TWM Select advised Mr Ahouvi on his latest purchase.