A vast distribution centre occupied by Britvic in Kilcarbery, Dublin 22, goes for sale today at €16 million – a price which will give investors a return of over 11.5 per cent.
Adrian Truick of Knight Frank, who is handling the sale, says that with yields beginning to contract for city centre opportunities, investors were increasingly looking to other secure property assets for an improved yield. With a double-digit cash return in this case, the investment is likely to appeal to both domestic and overseas investors.
Kilcarbery is a top class business park adjoining a high quality road network with access to the N7 (Dublin-Cork), N4 (Dublin-Galway) and the M50.
Both BWG and McDonald’s have substantial distribution centres in the park which adjoins the technology-driven IDA’s Grange Castle Business Park.
The Britvic distribution complex extends to 19,894sq m (213,184sq ft) and is located on a 10-acre site with substantial frontage on to the New Nangor Road.
The modern high-bay warehouse was developed in two sections with the original unit of 12,634sq m (136,000sq ft) completed in 2000 and the second phase of 7,153sq m (77,000sq ft) dating from 2004. The first built warehouse incorporates three-storey offices.
The complex is let to Britvic under two 20-year leases at a current rent of €1,943,000.
As the leases commenced in 2000 and 2004, the expiry dates are not coterminous with phase one terminating in 2020 and the second lease ending in 2004.
Britvic is a particularly well known drinks group with brands including Robinsons, MiWadi, Ballygowan and Britvic. The company also produces PepsiCo brands such as Pepsi, 7Up and Mountain Dew under licence in the UK and Ireland.