The sale of Eyre Square Shopping Centre represents a rare opportunity to not only acquire income from a prime shopping centre located in Galway city centre, it also provides redevelopment prospects which will be greatly welcomed by the numerous tenants currently seeking to acquire retail accommodation in the popular Galway retail market.
Joint agents Lisa Finn of DTZ Sherry FitzGerald and Simon Plunkett of DNG Commercial are quoting a guide price of €22.5m. The guide price reflects an attractive net initial yield of 8.6 per cent based on the current combined income of approximately €2,032,000 per annum, with the redevelopment potential further enhancing the attractiveness of the centre.
This prime retail investment comprises five sections;
1. The freehold of the entire centre;
2. Retail units occupied by New Look, JD Sports, and Penney’s;
3. Common area income;
4. The ramps area, which has full planning permission for redevelopment;
5. 19 Eyre Square.
Acquiring the freehold interest of the entire centre allows a purchaser flexibility in terms of the redevelopment of the centre.
The retail units occupied by New Look, JD Sports, and Penney’s are held under long term upward only leases from 2006 - 2007 and produce a rent of approximately €1,680,000 per annum, 83 per cent of total income.
The common areas comprise kiosk units, stores, telephone masts, and signage income along with the management obligation of the entire shopping centre and produces a rent of approximately €250,000 per annum.
The ramps area is located at the centre’s entrance off Eyre Square and comprises small retail units let on short term agreements to allow for redevelopment. The ramps area currently produces a rent of approximately €67,000 per annum. Full planning permission has been granted for the construction of a new three storey modern entrance building which will accommodate five new retail units and a cafe/restaurant with deck area at first floor level.
No 19 Eyre Square is currently tenanted by Goodbody’s and DNG Commercial on the upper floors. The ground floor, which had previously been occupied by Halifax, has recently received planning permission to accommodate food users. Demand for a unit with food use on Eyre Square, combined with the superb internal specification with many of its original period design features, will attract a strong level of demand from occupiers.
Galway retail opportunities have always attracted strong demand from local and international investors which was evident when Edward Square sold in 2013, achieving more than €27m. This further illustrates the underlying strength of the Galway retail market. Galway city is a thriving, bohemian, cultural, city which has established itself as a destination shopping location. Galway has a strong local economy with complementary business sectors, including manufacturing industry, tourism, education, healthcare, and services which include financial, construction, cultural, and professional.
Eyre Square Shopping Centre is one of Galway city's liveliest and most attractive centres, incorporating more than 60 local, national, and international stores together with a 450 space multistorey car park. Footfall figures for 2013 show approximately 185,000 visitors to Eyre Square Shopping Centre per week.
Galway has a short supply of suitable retail units which is leading to pent up demand for available floor plates. There are currently a number of national and international retailers seeking representation within Galway city. The redevelopment potential in Eyre Shopping Centre will benefit from this strong tenant demand.
Eyre Square Shopping Centre provides an excellent opportunity to acquire a prime well-located retail investment asset at an attractive yield with added redevelopment prospects. The property provides a stable return for potential investors with significant future potential through strategic asset management.
For further information contact Douglas Newman Good Commercial Property, 19 Eyre Square, Galway, at 091 865 333.