City East Retail Park outside Limerick for sale for €28m
Annual €2.3m rent roll includes weighted average lease period of 9.4 years
B&Q at City East Retail Park, Limerick. Photograph: Liam Burke/Press 22
Limerick’s highly successful City East Retail Park is expected to be of interest to a range of investment funds when it goes for sale today by private treaty. Dessie Kilkenny and Brendan Delaney of Savills are seeking offers of more than €28 million for the 12-year-old park, which will show an income yield of 7.58 per cent.
The extensive park is located on the Ballysimon Road just off the M7 motorway and 4km southeast of Limerick city. The same area has a number of other notable business centres, including Garryglass Industrial Estate, DeltaRetail Park, Eastway Business Park and East Point Retail Park.
City East produces secure long-term income with a weighted average lease period to run of 9.4 years. The sales facilities include two detached blocks extending to 16,607sq m (178,764sq ft), with 525 free surface car parking spaces.
The new owner will have the option of expanding the operation as a result of two planning permissions for a coffee pod extending to 244sq m (2,626sq ft) and an additional shop beside B&Q with a planned overall floor area of 1,427sq m (15,360sq ft).
The current rent roll of more than €2.3 million has obvious growth potential from both a top-up in turnover and future development opportunities.
The impressive tenant line-up includes B&Q, Harvey Norman, Halfords, Home Store +More, EZ Living, Home Savers and Maxi Zoo. B&Q remains the anchor tenant, having successfully emerged from examinership in 2013. As part of this process, B&Q’s passing rent was almost halved at that time, leaving the way open for the rent to be bumped up in the medium term.
Kilkenny said “every dial on the retail economy dashboard” was now pointing in a positive direction. The improvements in disposable incomes and strengthening house prices had already led to a growth in furniture, electrical and hardware sales.