A retail park which has been struggling since it was launched in Navan at the peak of the property crash in 2008 now looks destined for a better future following the decision of TK Maxx and Homestore & More to open new stores there alongside the anchor tenant Homebase.
The new round of lettings at Navan Retail Park has also encouraged Ulster Bank to offer the park for sale by private treaty in the coming weeks. Michelle McGarry of Colliers International is to seek offers in excess of €9.25 million for the investment, which was developed by a consortium headed by the Lagan Group. The current rent roll of €746,810 is due to rise to €886,810 when new tenants are in place.
The fortunes of the park are expected to change from September 25th if the crowd-puller TK Maxx succeeds in drawing anything like the large number of shoppers it attracts to its 19 other stores in the Republic. The company's reputation for giving up to 60 per cent off high street prices for men's and women's clothing has proven particularly popular in the recessionary times of the last six years. TK Maxx will be paying 5 per cent of its turnover rather than a conventional rent for 1,860sq m (20,000sq ft) and half as much again at mezzanine level. Homestore & More is to pay a rent of €140,000 for 1,626sq m (17,500sq ft) when it opens in the run-up to Christmas. Homebase is the other major trader in the centre, where it pays a rent of €200,000 for 2,324sq m (25,056sq ft). The other tenants include Smyths Toys, DID Electrical, Halfords and Petmania.
Colliers are convinced that the entire 11,148sq m (120,000sq ft) space will be occupied shortly now that 11 of the 13 units are committed. Once all the space is occupied, the next owner will have the option to finish out three further stores with a total of 2,987sq m (30,000sq ft) whose foundations are already in place. The park also has three further development sites, two of them extending to one acre each and a third with 6.5 acres.
Colliers said that apart from the well-secured income, there were opportunities to develop the park further with bolt-on potentials such as a filling station, motor sales and drive-thru food offers. The largest site was also ideal for a cinema complex.