Cashel centre makes over €6m
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%. The centre is the only purpose-built shopping complex in the town with an overall floor area of 6,537 sq.m (70,363 sq.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 2,500 sq.m (26,910 sq.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.
Report by the Irish Times
