Galway city’s Westside Shopping Centre guiding €9.6m
Rent roll of €750,000 for fully let 14-unit centre will show yield of 7.25%
Westside Shopping Centre outside Galway city, which was developed in the 1980s
Westside Shopping Centre outside Galway city is expected to attract considerable interest when it goes on the market today at a guide price of €9.6 million.
The centre, which is full let, produces a net operating income of more than €750,000. About 40 per cent of this is secured by national covenants, including McDonald’s, Maxol, Boyle Sports and the Driving Test Centre managed by the OPW.
The investment will show a net initial yield of 7.25 per cent on the basis of standard purchaser costs of 8.46 per cent, according to agent Cushman & Wakefield. The centre has a weighted average unexpired lease term to break of over 13.75 years.
Developed in the 1980s, the Westside centre comprises 14 units together with a McDonald’s Drive Thru and Maxol petrol station extending to 2,330sq m (25,089 sq ft). The centre is anchored by Dunnes Stores with a 3,808sq m (41,000 sq ft) store and has 280 surface car-parking spaces. The Dunnes store along with some other units have been sold off on a long-leasehold basis.
Kevin Donohue of Cushman & Wakefield said the sale will give investors an opportunity to acquire a high-yielding asset with the benefit of long dated income and numerous asset management opportunities to enhance returns.