A slice of a South Dublin shopping mall in receivership is on the block for €10.75m (£9.52m).
The guide price for roughly half of Ashleaf Shopping Centre – in the suburb of Crumlin – reflects a net initial yield of 10.14% and a capital value of €116 per sq ft.
The sale, launched by CBRE by private treaty, covers around 92,182 sq ft. The entire two-storey mall extends to approximately 180,526 sq ft.
CBRE has been appointed on behalf of receivers Grant Thornton to launch the sale.
The other half of the mall has been owned and occupied by Dunnes Stores since it was developed in 2000.
A new owner may have the opportunity to reposition the centre through redevelopment of upper floors to create a residential scheme.
The 92,182 sq ft up for sale was bought in 2005 by local developer Gary Smith for a reported €38m. This means that its value has slipped by around 70% based on the current asking price.
However, in 2013 receivers were appointed over Smith’s assets, including the shopping centre, and Allied Irish Banks secured a judgment for €51m against him.
The same year, Smith was adjudged as bankrupt in the UK.
The shopping centre was originally developed by Smith’s father and uncle.
Other tenants in the centre include Specsavers, McDonald’s and LloydsPharmacy.
The shopping centre currently produces an annual rent roll of approximately €1,18m pa and has a weighted average unexpired lease term of 5.27 years.
There are nine vacant retail units in the scheme covering 39,424 sq ft and 12,450 sq ft of vacant office space.
Yields for Irish shopping centres and secondary retail warehouses have softened over the past year, reflecting a trend experienced across the UK and Europe.
CBRE said retail prime shopping centre yields have weakened 50 basis points from 4.75% to 5.25% and retail high-street yields at 3.25% have extended from 3.15% since April 2018.
Of the €3.79bn spent on investments in the Irish market in 2018, just 14% comprised retail spend specifically.
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