Paddy Power sale-and-leaseback portfolio a safe bet at €6.3m guide price

Fourteen properties offer purchaser 7 per cent net yield and strong tenant covenant

The Paddy Power portfolio includes eight Dublin properties, including 40 Upper Baggot Street.

The Paddy Power portfolio includes eight Dublin properties, including 40 Upper Baggot Street.

 

Agent Savills is guiding a price in excess of €6.3 million for the Paddy Power Irish sale-and-leaseback portfolio. One of the most high-profile retail investments to have come to the market in 2019, the portfolio offers investors an opportunity to acquire a selection of 14 long-established owner-occupied Paddy Power properties located in Dublin, Cork and several leading provincial towns at an initial combined net rent of €480,000 per annum. The guide price equates to a net income yield of 7 per cent.

Flutter Entertainment plc, which is the parent owner of Paddy Power, will take a new lease on each property. Each lease will be for a term of 15 years with five-yearly rent reviews to the higher of open market or the consumer price index (CPI). Each lease will provide for a tenant-only break option upon the expiry of year 10 of the term.

Flutter Entertainment plc, which posted 2018 group revenue of £1.873 billion, is the leading international sports betting and gaming group, a constituent of the English FTSE 100 and Irish Stock Exchange and has more than 7,500 employees globally.

In terms of its location, the Paddy Power portfolio offers investors a well-balanced geographical spread of properties, eight of which are in Dublin including Upper Baggot Street, Parnell Street, Artane, Cardiffsbridge Road and Finglas village, Crumlin, Ballymun, Clondalkin.

The remainder of the properties all occupy strong provincial town locations including Drogheda, Maynooth, Thurles and Tralee. The portfolio also includes the Paddy Power betting shop located at Cornmarket Street in Cork city centre. All information in relation to the portfolio can be viewed in the dedicated data room, PPsaleandleaseback.com.

Stephen McCarthy, head of general retail agency at Savills, says: “The Paddy Power portfolio offers the purchaser long-term market rent protection underpinned by an exceptional global plc covenant.”