Tallaght retail investment for €9.1m offers 10.54% net initial yield

Belgard Square West comes for sale with strong tenant line-up led by BoyleSports, Supermac’s and Eurogiant

An aerial view of the Belgard Square West scheme. The 18 retail units are all located at ground-floor level

When it last came for sale at a guide price of €5.75 million in late 2019, Belgard Square West was delivering a net operating income of €672,096. With five of its 18 units vacant at that point, the Tallaght retail scheme promised a net initial yield of 10.63 per cent, a capital value of just €117 per sq ft, and asset management potential.

Four years on from its acquisition by its current owner, an Irish private investor, Belgard Square West is being offered to the market by agent Colliers at a guide price of €9.1 million. While that figure represents a significant premium on the portfolio’s previous sale price, the prospective purchaser on this occasion will collect rental income of €1.054 million annually from 16 of the scheme’s 18 units and be in line for a 10.54 per cent net initial yield on acquisition.

Built originally in 2005 by Garrett Kelleher’s Shelbourne Developments as part of the wider Belgard Square West scheme which comprises 370 residential units and mixed retail, leisure and restaurant space, the 18 units being offered for sale are all located at ground-floor level and range in size from 72sq m (775sq ft) to 1,400sq m (15,000sq ft), for a total of 4,550sq m (49,000sq ft) of retail space. The subject property occupies a high-profile location adjacent to The Square Shopping Centre and the UCI Cinema Complex and is situated along the main thoroughfare between the Tallaght red line Luas stop and the shopping centre.

The scheme has a strong tenant line-up led by BoyleSports, Smiles, Supermac’s and Musgraves (sublet to EuroGiant), and a weighted average unexpired lease term to break of 7.8 years. 74 per cent of the rental income is reserved under upward-only rent review provisions.


Stephen Conway of Colliers says: “We are expecting strong interest in this sale given the mix of high-yielding income underpinned by strong covenants. The incoming purchaser will also have an opportunity to enhance value and drive income growth on leasing the two vacant retail units.”

Ronald Quinlan

Ronald Quinlan

Ronald Quinlan is Property Editor of The Irish Times