TWM expects strong demand for No 32 Newcastle Road, Galway, which it is bringing to the market for sale. This semidetached two storey over basement mixed use investment building is situated within a busy location on the fringe of Galway city centre, immediately opposite University Hospital Galway.
TWM is seeking offers in excess of €925,000 for the investment which is fully occupied currently producing a gross rental income of €86,600 per annum. No 32 Newcastle Road extends to approximately 3,665sq ft (340.5sq m ) and provides commercial use at ground and basement levels with residential accommodation overhead. The commercial element of the building is occupied by Mixgreens restaurant at ground and basement floor, accommodating approximately 1,837sq ft (171sq m ), and a medical centre at ground floor, occupying 703sq ft (65.3sq m ). Two residential units are situated at first floor, each of which extends to approximately 650sq ft (60sq m ) and are laid out to provide kitchen/living room, bathroom, and two bedrooms. Each residential unit is accessed separately at ground floor level. Tenant car parking is to the rear of the premises.
The investment benefits from a central location, and forms part of a commercial linear development along Newcastle Road providing amenities for both UHG, located immediately opposite, and the nearby NUI Galway campus. This investment opportunity is located just 1.2km from Galway city centre and adjoining occupiers include Tesco, Supermac’s, and Ulster Bank. There is on street parking for customers along Newcastle Road.
The commercial units are occupied with a weighted average unexpired lease term (WAULT ) of more than 13 years producing an annual rent of €65,000 while both residential units are let subject to a gross rental income of €21,600 per annum. This mixed use development is fully occupied producing a total income of €86,600 per annum, with provision for immediate rental growth.
The guide price of €925,000 reflects a net initial yield of 8.96 per cent (based on gross income and assuming standard purchase costs of 4.46 per cent ). Sarah Winters of TWM is handling the sale and comments that this location, coupled with the attractive lot size, long term WAULT on the commercial element, and relatively low management requirements, will entice investors. Additionally the historically low/negligible deposit rates on offer will drive investors to look for solid investment opportunities in the market.
For more information contact Sarah Winters, TWM, Unit 11 Dockgate, Galway, phone 091 458 987.