Musgrave Retail Park at €4.75m offers buyer net initial yield of 7.91%

The Waterford scheme is the main supply point for Musgrave retailers across the southeast

The rental income at Musgrave Retail Park is highly-reversionary with uplifts due in 2021 and 2022

The rental income at Musgrave Retail Park is highly-reversionary with uplifts due in 2021 and 2022


Agent Knight Frank is guiding €4.75 million for the well-let and well-located Musgrave Retail Park in Waterford.

Developed in 2009, the scheme is fully-occupied by two high-profile tenants, Musgrave and The Range, and is delivering total rental income of €407,712 per annum, equating to €4.21 per sq ft.

While the prospective purchaser stands to secure a net initial yield of around 7.91 per cent based on those figures, the rental income is highly-reversionary, with fixed rental increases rising to €433,676 per annum (€4.48 per sq ft) in June 2022. The rental uplift offers the buyer a potential yield of 8.89 per cent.

Located at the junction of the Kilbarry Road with the R710 on Waterford’s ring road, approximately 6km southwest of the city centre, Musgrave Retail Park briefly comprises an L-shaped scheme, extending to 8,994sq m (96,810 sq ft) with surface parking for 300 cars.

Musgrave occupies units 1 and 2 (approx 5,277.8sq m; 56,810sq ft) on a 20-year lease from 2012, featuring fixed rental uplifts of 12.5 per cent every five years. Musgrave currently pay rent of €207,712 per annum (€3.66 per sq ft) and will see an uplift to €233,676 per annum in June 2022 and to €262,886 in June 2027. There are no tenant break options.

The wholesale operation they operate from the complex is one of strategic importance to Musgrave as it is its main supply operation to its retailers for the southeast of the country.

The Range (Ireland) Ltd took the balance of the accommodation (3,716.1sq m) at Musgrave Retail Park in 2018. Founded in 1989, The Range is now one of the fastest growing retailers in the home, leisure and garden sector in the UK and Ireland with 170 stores.

The company began opening stores in Ireland in 2016, and now have a presence in Dublin (stores at Northside and Liffey Valley retail parks), Maynooth, Carlow, Limerick, Cork and Waterford.

The Range is in occupation on an agreed rent of €200,000 per annum (€5 per sq ft). The Range lease features a break option in January 2021, which requires nine months prior written notice together with payment of a €400,000 rental penalty. The Range lease is fully guaranteed by CDS (Superstore International) Limited.

The weighted average unexpired lease term to tenant breaks is 7.46 years and 13.2 years to lease expiry.