West City Retail Park at €6m offers scope to grow rent and develop
Scheme in Cork suburbs already generating €504k in annual rental income from Lidl
West City Retail Park is located in Cork’s largest suburban town, Ballincollig
While there’s no doubt the retail sector is facing a major challenge, investors may be interested in an opportunity that has come to the market in Cork’s largest suburban town, Ballincollig.
At a guide price of €6 million, West City Retail Park comes with significant reversionary potential thanks to the resolution of a long-standing legal action which had resulted in the long-term vacancy of three retail warehouse units totalling 46,428sq ft.
With those units now available for occupation, Ross Fogarty of Knight Frank says the prospective purchaser will have a “ready-made opportunity” to increase the rental income being generated at the scheme by its anchor tenant, Lidl.
Unit 4 extends to 1,642sq m (17,672sq ft) and is let to Lidl Ireland GmbH on a 25-year full repairing and insuring (FRI) lease from April 2009 at an annual rent of € 504,158. Rent reviews are every five years on an upward-only basis. There is a break option on the expiry of the 15th year of the lease subject to a six-month rental penalty.
Units 1-3 are currently vacant and extend to a combined approx 4,313sq m (46,428sq ft) and are generally open plan in configuration. The units feature extensive window glazing to the front elevation and translucent light panel in the ceilings. All units have rear service yards and loading access. There is significant immediate asset management scope and additional rental income potential.
The overall scheme, meanwhile, extends to around 5,995sq m (64,100sq ft), and was developed in 2008. The retail park has 300 car parking spaces.
Immediately adjacent to the scheme’s developed area is a further cleared 2.2-acre brownfield development site that originally had planning to accommodate an office block. While this planning permission has lapsed, the purchaser would have the opportunity to revisit a new application.
West City Retail Park is highly accessible, situated within close proximity to the N22 bypass, which allows onwards access to Ireland’s national road networks along with main arterial routes running across the country. Ballincollig, meanwhile, is a fast-growing satellite town with a population of 18,500, according to the 2016 census. The town is located within close proximity to Cork city and a wider catchment area comprising about 380,000 people.
Agent Knight Frank is offering West City Retail Park and its adjoining development site for sale in one lot on the instruction of statutory receivers Duff & Phelps at a guide price of €6 million.