French investor Iroko Zen has returned to the Irish acquisitions trail, paying just under €18 million to secure ownership of South Quarter Airside near Swords in north Dublin.
Located across from Airside Retail Park, the hugely successful scheme owned by Irish Life, Iput, and its original developer, David Daly, the investment comprises two four-storey multi-let buildings extending to an overall area of 8,424.83sq m (90,685sq ft) and 230 car-parking spaces on a site of 0.67 hectares (1.65 acres).
While the property was arguably best known up until 2019 as the home of the Wright Venue nightclub, it has, since then, undergone a comprehensive redevelopment and transformation programme at the direction of its outgoing owners, the Michael J Wright Group.
Extending to 5,302.82sq m (57,079sq ft), Block A at South Quarter Airside now contains a newly developed remote broadcast and content production centre (RBC) and a mix of six retail/restaurant units.
The RBC, which measures 4,439sq m (47,791sq ft), was created to accommodate the content production requirements of Riot Games. Established in 2006 the California-headquartered e-gaming company is best known for its debut title League of Legends, the most-played PC game in the world.
Riot Games occupies Block A on a new 15-year lease at a passing rent of €600,000 per annum stepping up to €650,000 in year three with a CPI-indexed rent review at year five.
Other tenants in Block A include Hogs & Heifers, Pizza Dog, Indigo Pearl and O’Briens with a combined rent of €287,500 per annum. There is a weighted average unexpired lease term (WAULT) to break of about nine years and over 14 years to expiry.
Block B comprises a four-storey building extending to approximately 3,122 sq m (33,605 sq ft) and is let in its entirety to Flyefit on three separate leases producing an income of €445,000 per annum.
Combined, Airside South Quarter provides an attractive WAULT to break of over 10 years with about 13.4 years to expiry. The €17,950,628 paid by Iroko Zen represents a net initial yield of about 6.75 per cent after allowing for standard purchaser’s costs of 9.96 per cent.
South Quarter Airside sits opposite Airside Retail Park and Airside Office and Motor Park. The location is home to one of the largest and leading retail parks in Ireland, as well as offices, leisure, motor showrooms, restaurants, cafes and a hotel.
Adjoining retailers include B&Q, Homestore & More, EZ Living and Harvey Norman while other adjoining occupiers include Ryanair, VHI Swiftcare Clinic & The Premier Inn Hotel.
South Quarter Airside is Iroko Zen’s fourth investment in the Irish market to date. Last September, the company completed two transactions, paying €12.2 million and €8.49 million respectively for Block P1 at Dublin’s Eastpoint Business Park and for a portfolio of five buildings let and occupied as branch premises by Bank of Ireland in counties Wexford, Longford, Tipperary, Cork, and Galway.
Iroko Zen’s first investment here took place in June of last year, and saw it paying €10.14 million for White Pines, a newly-built and fully let retail scheme developed by Ardstone in south Dublin.
Located on Stocking Avenue in Rathfarnham, the development comprises a purpose-built supermarket fully let to Tesco Ireland Limited and a creche building let to Safari Childcare Limited.