Aldi Sandyford on market at guide price of €10.75m; promises 5.1% return
25 May 2021 | 0
German retailer Aldi’s store in Sandyford, Dublin 18, is currently up for sale and vendors are expecting strong interest from buyers, with the property which is let until 2036, currently rented at €603,376 per annum.
A guide price of €10.75 million has been placed on the property by Patricia Ward and Ryan Tyrell of agent TWM, subject to the Aldi lease.
The Irish Times reports this provides a return of 5.1% after standard costs of 9.96% have been deducted.
With Bank of Ireland having indicated its intention to apply negative interest rates on accounts holding upwards of €1 million, the property could prove attractive for private Irish investors.
Part of the Rockbrook development of apartments and retail units, the ground-floor purpose-built supermarket stands at 1,879sq m (20,226sq ft) with 100 basement car-parking spaces with travelator and lift access. Location is another plus for the building which is situated immediately opposite the Stillorgan Luas green line stop.
Aldi has traded from the Sandyford unit since 2011 and its lease expires in 2036, with a tenant break option due in October 2029.
At present, the current passing rent is €603,376 per annum and the next rent review is scheduled for October 2021. Rents are subject to a yearly maximum increase of 4%.
Research conducted by Kantar Worldpanel in December 2020, found that Aldi’s sales increased by 14% annually to achieve a 12% market share in Ireland.