Nenagh Retail Park on sale at discounted price of over €2.6m

Woodies and Aldi are main crowd-pullers at Co Tipperary park, which has seven warehouses

Nenagh Retail Park: Its  purpose-built warehouses extend to 14,678sq m, with two adjoining sites of 3.1 acres for future development

Nenagh Retail Park: Its purpose-built warehouses extend to 14,678sq m, with two adjoining sites of 3.1 acres for future development

 

The 10-year-old Nenagh Retail Park in Co Tipperary is to be offered for sale at a significant discount on its original valuation.

Kevin McMahon of Savills is seeking offers in excess of €2.6 million for the purpose-built park which is being sold on the instructions of receivers Duff & Phelps.

It has seven purpose-built warehouses extending to 14,678sq m (158,000sq ft) , a surface car park with 400 spaces and two adjoining sites of 3.1 acres which offer future development potential.

One of the two sites of 2.4 acres was originally earmarked for a nursing home, while the smaller site of 0.7 of an acre was identified as a possible venue for a car showrooms.

The retail park is anchored by Woodies DIY, who provide 43 per cent of the total rental income of €240,000.

That figure is set to rise to €290,000 following agreement on the letting of one of the vacant buildings.

The arrival of the new trader will increase the income yield from 9 per cent to over 10 per cent.

Woodies have a break option in five years, but its lease does not expire until 2031.

The Aldi store next to Woodies is an important crowd-puller in the park.

Other traders include Export Electrical, World of Wonder, |Jump N Gyms and Slattery Tiles.

Kevin McMahon said the selling price for the park was well below replacement costs. New owners could increase revenue streams through leasing the remaining vacant warehouses, regearing existing tenancies and developing the two available sites.