Minaun Capital pays €20.5m for Galway retail scheme

Minaun Capital, a property investment vehicle established by the founder of online auction specialist BidX1, Stephen McCarthy, has acquired the Wellpark Retail and Leisure Centre in Galway in an off-market transaction for €20.5 million.

The completion of the purchase from the scheme’s owner, a private investor, sees Minaun secure ownership of the retail park, the nine-screen Eye Cinema complex along with a 550-space surface and basement-level car park. The scheme, which was developed originally by Gerry Barrett’s Edward Holdings at a cost of €75 million, has a strong tenant line-up that includes Woodies, Lidl, Homestore & More, DFS furniture and Petmania, with Boots currently fitting out its new unit. The five-star G Hotel did not form part of the sale.

Positioned on a site of 33,106sq m (356,353sq ft) at the junction of Lough Atalia/College Road and the Old Dublin Road, 2km from Galway city centre and 1km east of the N6, the Wellpark Retail and Leisure Centre is understood to be generating total current income of €1.9 million per annum. Based on that figure, Minaun Capital can expect to secure net initial yield of 8.5 per cent, assuming standard purchaser’s costs of 9.96 per cent.

News of the transaction comes just over one year on from Minaun Capital’s €4.35 million purchase of Mill Retail Park in Gorey, Co Wexford. The price paid in that instance reflected a net initial yield of 8.25 per cent and represented a slight premium of 2 per cent on the €4.25 million which had been sought by MM Capital when it offered the scheme for sale in November 2021.

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Mill Retail Park briefly comprises five retail units ranging from 276sq m (2,966sq ft) to 1,505sq m (16,200sq ft). Irish home store Choice Homes is the largest tenant, occupying two units with a lease expiring in 2033 and a term-certain of about six years. Iceland, Maxi Zoo and Polonez occupy the remaining three main units. The scheme contains an additional 168sq m (1,811sq ft) Costa Coffee pod in the car park.

Commenting on Minaun Capital’s acquisition of Wellpark Retail and Leisure Centre, Karl Stewart and Peter Love of Cushman & Wakefield said: “This off-market transaction further highlights the demand for well-located retail investments following several transactions over the past 24 months. The park is trading extremely well, and there are immediate opportunities to increase the rent receivable for the purchaser.”

Johnny O’Connor of Bidx1, who acted on behalf of the purchaser, said: “Minaun Capital is delighted to add Wellpark Retail Park to its growing commercial property portfolio, and continues to seek well-located retail assets in both the north and south of the island”.