Investors looking for immediate rental income underpinned by strong tenant covenants and an excellent location will be interested in the sale of the Griffeen Centre in Lucan, Co Dublin. The subject property is being offered to the market by joint agents Colliers and Bannon at a guide price of €6.6 million.
Located on the Griffeen Road in Lucan and in the heart of an established residential area, the Griffeen Centre comprises a retail-led neighbourhood scheme extending to 26,900sq ft. It incorporates a grocery anchor, creche, medical centre, restaurant and five office suites. The centre’s surface level car park is to the front and has 94 car-parking spaces.
The centre is more than 95 per cent occupied and is producing overall rental income of about €682,000 annually with a weighted average unexpired lease term of just over 5.88 years. The tenant line-up includes Musgraves Ltd (trading as Centra), Giraffe Childcare Ltd, McCabe’s Pharmacy, Boylesports and Pizza Hut.
While the centre will provide the incoming purchaser with rental income on acquisition, there is an opportunity, according to the selling agents, to add value by letting the scheme’s two vacant office suites and to increase the rental income through a number of lease regears.
The investment’s €6.6 million guide price equates to a net initial yield of 9.4 per cent and a capital value of €245 per sq ft.
Stephen Conway of Colliers says: “We expect to see strong interest in this sale given the mix of high-yielding income underpinned by strong covenants. And there is a real opportunity to enhance value through a number of initiatives that will drive rental growth.”
Rod Nowlan of Bannon says: “This resilient asset is embedded in a strong and growing Dublin suburban catchment and benefits from a combination of over 70 per cent of institutional tenant covenants and a surface car park which would be difficult to match in the future.”