Retail Investments:Two of the original syndicates which invested in Eyre Square shopping centre in Galway are planning to offload two adjoining retail investments in the complex.
Galway-based Smith Auctioneers is seeking €3.61 million for the Athena shop and €4.15 million for the Vero Moda unit.
At those price levels, the gross yields would be in the region of 3.65 per cent.
Both shops are held under 35-year leases from July, 1991, with five year rent reviews.
Athena is paying a rent of €131,900 per annum for a shop of 122.54sq m (1,319sq ft) while Vero Moda is paying €151,700 for 140.93sq m (1,516sq ft).
The two groups of investors were able to avail of valuable capital allowances when they bought the shops shortly before the shopping centre opened in 1991.
"It is still the number one shopping centre in Galway city centre and has a lot going for it," says Jeff Smith who is handling the sale of the two investments.
All the shops in the centre were originally bought by individual investors or syndicates keen to avail of the available tax breaks, as well as the long term prospects for capital appreciation.
While the multiple ownership has been a drawback in terms of implementing changes, the Eyre Square shopping centre has continued to attract new tenants and an ever greater footfall.
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