Nama has confirmed that it has put its first Irish retail park portfolio on the market with a guide price of €110m (£87m).
The Parks Portfolio comprises five assets, including phase one of Carrickmines retail park, known as The Park, which reflects circa 60% of the value of the portfolio.
The four other assets are M1 Drogheda, Lakepoint in Mullingar, Poppyfield in Clonmel and Four Lakes in Carlow.
The portfolio generates a net initial yield of 8.4%.
Nama said it expects the portfolio to be of interest to a wide range of private equity firms.
It added that given the yield compression experienced in the office market it is also expected that REITs and funds will have an interest in the emerging retail investment market and the ability to benefit from asset management opportunities.
CBRE and DTZ Sherry FitzGerald are jointly advising on the sale.
The assets in detail
• The Park in Carrickmines is south Dublin’s premier retail park. Phase one comprises 203,170 sq ft of retail warehouse space and has tenants such as Woodies, PC World, Next and Halfords. The scheme generates a rental income of circa €4.4m pa and has a vacancy rate of 7.6%. Phase 2, which is not included in the sale, has a tenant line up to include TK Maxx, Heaton’s, Mothercare & Harvey Norman.
• M1 Retail Park in Drogheda is a 30-minute drive north of Dublin and comprises approximately 258,188 sq ft of mixed use space to include retail warehousing, offices, leisure and restaurant facilities. M1 Retail Park also has development potential, with adjacent zoned land of approximately 31 acres which is included in the sale. The M1 currently generates a rent roll of circa €2.8m pa, with 35% of the income generated from national brands such as Woodies DIY, Smyth Toys and Heaton’s.
• Located in Mullingar with a 200m frontage to the N4 (the main Dublin-to-Sligo Road) is Lakepoint Retail Park. Built in 2001, Lakepoint was the first retail park to be developed outside Dublin and provides more than 85,000 sq ft of space with the opportunity to develop a 2,000 sq ft restaurant/coffee kiosk space in the existing car park. Approximately 75% of the park is let. Situated at the entrance of the Park is IMC Cinemas, which adds significantly to the overall footfall of the retail park. Lakepoint produces an annual rent of approximately €772,000 pa and has a WAULT of 11.5 years.
• Poppyfield Retail Park in Clonmel, the administrative capital of the south midlands region, is anchored by Woodies DIY along with Supervalu occupying circa 42,000 sq ft and 32,000 sq ft respectively. Other tenants include Harry Corry and DID Electrical. Poppyfield also has a retail neighbourhood scheme with occupiers including Carphone Warehouse, Meteor Mobile and Sam McCauley Chemist. The current rent roll is circa €1.1m pa.
• Four Lakes Retail Park is located in Carlow, one of the largest urban areas in Ireland, with a population of 23,000. The park is on Dublin Road, one of the main access routes to the M9 motorway. Constructed in 2008, it offers 113,731 sq ft of retail warehousing. A drive-through Supermacs is located at the entrance of the park adjacent to Maxi Zoo and PC World. The scheme generates circa €323,521 pa and has a WAULT of 10.25 years. Nama said a number of units in the development are currently unoccupied and could suit alternative uses subject to obtaining the necessary planning consents.
bridget.o’connell@estatesgazette.com
