RETAIL MARKET:Investors in the recently completed purchase of the second phase at The Park in Carrickmines will get a net initial yield of 4.04 per cent on the investment, writes Jack Fagan.

IN SPITE OF the turmoil in the money markets, Warren Private Clients and AIB Private Banking have raised €38 million in equity towards the cost of funding the acquisition of the second phase of The Park, a retail warehousing and shopping complex in Carrickmines, Co Dublin.

Investors will get a net initial yield of 4.04 per cent on the investment which cost €97.5 million and was recently completed.

The rent roll is around €4.25 million.

Warren also purchased the first phase of The Park in 2006 for around €100 million, a deal that shows an equivalent yield of 4.5 per cent.

The top class facility has been developed by Michael Cotter's Park Developments.

One of the attractions of the second phase is that about half of the 11,800sq m (127,014sq ft) of shopping facilities have open use, though a supermarket or convenience store will not be allowed.

There is strong evidence to show in the UK market that parks with open consent show stronger rental growth than parks exclusively concentrating on the sale of bulky goods.

The second phase comprises eight retail warehouses ranging in size from 434sq m (4,680sq ft) to 4,923sq m (53,000sq ft).

This element forms part of a 20-acre development which will include offices, a leisure centre, motor showrooms, a business conference centre, residential units and a four-star hotel.

The Park's location adjacent to Junction 15 of the M50 and also close to a proposed stop on the Luas - when it is extended in 2010 - makes it easily accessible to a vast number of shoppers.

The anchor tenant in the second phase of the park, Harvey Norman, is paying a rent of around €1.5 million for its largest Irish store which extends to 4,929sq m (53,055sq ft).

Other retailers to open include TK Maxx which is paying a rent of about €715,000 for a store of 1,897sq m (20,419sq ft); Mothercare which is paying around €373,000 for a unit of 867sq m (9,329sq ft); and Howards Storage which is paying about €220,000 for 435sq m (4,682sq ft). All the tenants have taken long leases.

Fergus O'Farrell of Savills HOK, who advised Park, said there was strong interest in the three remaining units which are expected to rent at around €484 per sq m (€45 per sq ft).

The tenants in the first phase include Woodies DIY, Smyths Toys, Home Focus at Hickeys, Halfords, 53 Degrees North and Jim Langan Furniture.