Eyre Square Shopping Centre package acquired for €9.575m
Sale was confined to eight retail units and control of the centre together with the freehold common area units
Print19 April 2022
A prime Galway shopping location – Eyre Square Shopping Centre in Galway city centre has been sold for €9.575 million.
The sale was handled by Colliers. The Irish Times reports that although the group did not identify the purchaser, it understands the scheme has been bought by a fund managed by Davy Real Estate.
The sale price represents a 33% discount on the €12.75 million Colliers had been guiding when it first put the shopping centre on the market last August on behalf of US investment giant Marathon Asset Management.
The final price equals a net initial yield of 9.78% after allowing for standard purchaser’s costs.
Although there are over 70 retail units and kiosks within the shopping centre, the sale itself was confined to eight retail units and control of the centre together with the freehold common area units. The eight retail units house strong tenants, including JD Sports, Great Outdoors, Specsavers, Diesel, Starbucks and Vero Moda.
The Irish Times reports the units are currently producing rental income of €869,200 per annum with a weighted average unexpired lease term of 6.24 years to break. The incoming investor will also have an opportunity to immediately increase the rent roll on letting the two vacant units.
The centre received considerable investment by Marathon, which undertook a substantial capital expenditure and refurbishment programme to create a redesigned entrance from Eyre Square alongside the development of modern retail units and a restaurant.
The common area units comprise a number of short and long-term rolling licence agreements and include kiosks, store rooms, telecoms masts and general mall income. Located over both floors of the centre, they generate a current rent roll of €160,202 per annum.
“This opportunity saw significant interest from investors, predominantly domestic, given the attractive yield and high profile of Eyre Square Shopping Centre,” said Michele McGarry of Colliers’ capital markets division.
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