Northside's owners seek a third party

The joint owners of the Northside Shopping Centre in Coolock, Dublin 17, are seeking around £20 million (25.39m) for a one-third equity stake in the complex. Such a selling price would provide a yield of over 5 per cent.

Green Property Co and AIB Investment Managers, each with a 50 per cent holding, have engaged Palmer McCormack to find a third investor for the centre, shopping centre in Dublin, having opened in 1968, two years after Stillorgan. It was for investors is that there are ongoing rent reviews most of the time among the 80 tenants. Typical rents for 1,150 sq ft shops are £48 (61) per sq ft, while 816 sq ft units rent at £59 (75) per sq ft. Many of the smaller shops are on seven-year review patterns, while the larger units are reviewed every five years.

Northside has traded very well over the years and has apparently not suffered since the opening of the Pavilions in Swords - largely because it has the same anchors, Dunnes Stores and Superquinn.

Unlike the Pavilions, Superquinn pays a rent in Northside - only £205,000 (260,300) for a supermarket of 26,228 sq ft. The other major tenant, A-Wear, is currently facing a review of its rent of £120,000 (152,370), for a store of 7,552 sq ft.

Dunnes occupies over 38,000 sq ft of the total retail space of 147,000 sq ft in the centre.

The initiative to sell a one-third stake appears to have come from AIB Investment Managers, who have been relatively inactive in the investment market in recent years.

Property manager Caroline O'Shea says that while AIBIM have benefited from their high exposure in the property market, equities had under-performed in recent times. As a result, there are limited funds for property investment and they have been seeking ways to enhance their portfolio.

One of their projects has been the replacement of an industrial unit by a 47,000 sq ft office block at Airton Road in Tallaght. National Irish Bank has just agreed to lease 30,000 sq ft of this space at a rent of close to £15 (19) per sq ft.

Green's willingness to go along with the idea of reducing their stake in Northside is hardly surprising given their preoccupation with the Blanchardstown Town Centre, one of the great success stories of recent decades.