The high-yielding Meakstown Shopping Centre in Finglas, Dublin 11, is one of the most notable investment properties going for sale at Allsop’s final commercial auction of the year at the RDS on December 9th.
A reserve price of €2 million-€2.4 million has been set for the centre which comprises five retail units, a creche, bar, restaurant and a gym. The nine units extend to 2,821sq m (30,364sq ft)and are all occupied, with the exception of the gym.Tenants include Boyle Sports, Hickey's Pharmacy, Macari's and Eurospar, with a weighted unexpired average lease term at 12.69 years.
Although the reserved rent stands at €660,140, several rent abatements are in place and two tenants are not currently paying rent, reducing the passing rent to €342,311. This provides for a net initial yield of 16.38 per cent, with the potential to enhance the return further through active management of the vacant unit and the two others not paying rents.
Swords investment
Another interesting investment going under the hammer, 17 Main Street, Swords, Co Dublin, comprises a ground-floor restaurant, first-floor piano bar and office facilities. Allsop has set a reserve range of €1.2 million-€1.3million for the high-profile property anchored by Masterson’s Steakhouse, which is paying a rent of €91,922 under a 35-year lease from 2001. The property also includes two floors of offices and a three-storey office block to the rear, which is accessed independently from Chapel Lane.
The building has an overall floor area of over 860sq m (9,267sq ft) and is subject to four tenancies with one office unit vacant. The overall rent of €171,972 will show a net initial yield of 13.72 per cent.
Another investment likely to attract considerable attention is the Tesco Express store at Willow Court on Hazelhatch Road, Celbridge, Co Kildare. A reserve price of €380,000- €420,000 has been set for the property, which has been leased by the UK multiple at a rent of €40,000 per annum.
The 25-year lease provides for a rent increase in year 10 linked to the consumer price index and breaks in 2020 and 2025. The initial yield will be 10.1 per cent.
Allsop is also to auction a regional retail and warehouse portfolio with a reserve price of €2.08 million. The portfolio comprises two main street retail units in Mullingar and Tullamore as well as warehouses in Carlow, Dundalk and Longford.
A reserve price of €950,000- €1,050,000 has been set for a public bar at Main Street, Ballincollig, Co Cork, which includes a bar, ground-floor retail unit and a first floor restaurant. Only the bar is trading at the moment under a four- year and 11-month lease at a rent of €68,000 per annum.
The Allsop catalogue carries 68 commercial assets for next month’s auction when reserves will be set at €16 million. The auction house has achieved sales of €112 million to date in 2015.
Richard O’Neill, head of commercial auctions, said they had seen continued yield compression in the cities during 2015 and the auction should provide a good indication of market prospects in 2016.
