Retail park containing Woodies, Argos and Sports Direct is for sale
From an occupational perspective, retail parks have proven themselves extremely resilient through retail market challenges and having just come through one of the most significant challenges in the sector, it is hard to ignore the opportunity
THE retail park in Tullamore where Woodies, Sports Direct and Argos are located has come on the market.
Tullamore Retail Park, Cloncollig, will either be sold on its own for an estimated €18.5m-€19.5m or as part of a portfolio along with Letterkenny Retail Park and Deerpark Retail Park in Killarney.
Together, the three retail parks are being guided in excess of €67.5m by property advisors CBRE who are handling the sale.
CBRE say the sale presents an opportunity to acquire a geographically diversified retail portfolio in pivotal regional towns throughout Ireland.
Tullamore Retail Park is 2km from the town centre on a nine-acre site and comprises a gross internal area of about 16,000 sq m (170,000 sq ft) in the form of nine retail warehouse units and a stand-alone drive thru restaurant, which is currently occupied by Burger King.
According to CBRE, Tullamore Retail Park trades exceptionally well, proven in its consistent 100% occupancy.
Woodies DIY is the anchor store and it occupies approximately 4,900 sq m (53,000 sq ft) and is described as the main DIY retailer in the vicinity.
The wider tenant mix is described as being suited to everyday household goods consumption, with tenants including Sports Direct, Homesavers, Argos and DID Electrical.
The adjoining Tesco Extra and petrol station are not included in the sale but CBRE said they are an additional footfall draw to the park.
Tullamore Retail Park is producing a net operating income of about €1.68m per annum and has a WAULT (weighted annual unexpired lease term) of close to 6.78 years to break option and 10.13 years to expiry.
The three retail parks are known as the Cobalt Collection and are for sale by private treaty. The Cobalt Collection is currently owned by US investment group Davidson Kempner.
CBRE says the sale presents an opportunity to acquire a geographically diversified retail portfolio in pivotal regional towns throughout Ireland.
The entire collection is producing a stable annual rent roll of €6,475,000 with an overall WAULT of eight years to expiry.
The agents for the sale said retail parks proved themselves a resilient asset class during the pandemic, out performing all other retail sub-sectors because they were deemed 'essential use' and not subject to government closures; coupled with open air surface car parking and large open space configuration.
The Irish retail park sub-sector is increasingly sought after by investors, as it is considered stable and a good prospect in the low current interest environment and in comparison, to the lower returns prevailing in other sectors, according to CBRE.
Paddy Farrelly, selling agent, Capital Markets Division, CBRE commented: “We anticipate strong interest for The Cobalt Collection. From an occupational perspective, retail parks have proven themselves extremely resilient through retail market challenges and having just come through one of the most significant challenges in the sector, it is hard to ignore the opportunity and return profile on offer in the subsector.
“The Cobalt Collection is a notable example of this resilience at an individual asset level. It offers an incoming investor scale, diversified income and stability in the sector as a portfolio. Each scheme's individual performance is exceptional, serving as prominent retail hubs within their catchment areas.”
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