Davy Real Estate has bought a modern shopping centre and adjoining petrol filling station in Cashel, Co Tipperary, for one of its property funds.

The Dublin fund manager paid slightly over €6 million for the investment which is expected to show a return of around 12.3 per cent. The centre is the only purpose-built shopping complex in the town with an overall floor area of 6,537sq m (70,363sq ft) and 342 surface car-parking spaces.

Anchor tenant Tesco is paying rent of €565,000 per annum under a long term lease with a weighted average unexpired lease term of over 11 years. Other tenants include O'Dwyer's Pharmacy and Cordis Cashel Ltd – a subsidiary of Johnson & Johnson – providing an additional rent roll of €92,896.

The centre opened in 2008 and has 2,500sq m (26,910sq ft) of vacant retail space which when let should considerably enhance the rent roll. The overall rent at this stage is €657,570 with a weighted average unexpired lease of over 10 years. Tesco is also paying €163,570 for a standalone Tesco petrol filling station located between the centre and junction 9 of the M8. The lease has another eight years to run.

The joint selling agents were Lisney and Bannon.