French investor in €9.8m deal for Waterford retail unit

French investor Iroko Zen has completed its seventh acquisition in the Irish investment market, paying €9.8 million for the premises of DIY retail giant Woodie’s on Cork Road in Waterford city.

The property briefly consists of a large high-bay retail warehouse extending to 4,277.18sq m (45,039sq ft). The building is let to Woodie’s DIY Ltd with a guarantee in place from its parent company, the Grafton Group PLC, on a 25-year term from June 2007 expiring in June 2032. The lease incorporates five-yearly upwards-only rent reviews. The passing rent is €909,184 per annum, with the rent depending on good payment by the tenant. Woodie’s is Ireland’s largest DIY, home and garden retailer, with more than 35 shops nationwide. Woodie’s employs about 1,400 staff and has been operating in Ireland for more than 30 years.

The property comprises a 3.4-acre site 3.4 which is adjoined by Lidl on the Cork Road between the Ivory Retail Park and Kingsmeadow Retail Park. Cork Road is about 1.5km from Waterford city centre. Waterford city has a population of 60,079 (according to 2022 census) making it the fifth-most-populous city in the country.

News of the deal comes just four months on from Iroko ZEN’s sixth Irish investment. Last May, the company paid €4,970,840 for Westland House (Block A), a fully let three-storey office block at Westland Park in Dublin 12, while in March it paid €4.965 million for units 5A and 6 at Galway Retail Park. In January, Iroko ZEN secured ownership of South Quarter Airside near Swords in north Dublin following the agreement of an €18 million deal with the Michael J Wright Group.

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Commenting on the completion of the company’s latest purchase, Colliers’ head of capital markets, Michele McGarry, said: “We are delighted to have concluded the acquisition of Woodies in Waterford on behalf of Iroko Zen. The long unexpired lease term, coupled with the quality of the covenant underpinned the investment proposition.”

Peter Love, divisional director at Cushman & Wakefield acted as joint acquisition agent on the deal. He said: “This transaction further underpins the strong demand for retail warehousing throughout Ireland, and for the calibre of covenant offered by tenants such as Woodie’s DIY.’

Isobel O’Regan, director at Savills, acted on behalf of the vendor.