French investor acquires Galway Retail Park units for €4.965m
2 March 2023
After paying €4.965 million for units 5A and 6 at Galway Retail Park, French investor Iroko Zen has completed its latest acquisition in the Irish investment market.
The properties, which are currently let to Halfords and Lifestyle Sports, comprise two identical retail warehouses. This extends to a total of 23,980sq ft over both units, with a 400-space communal surface car park also provided.
The Irish Times reports Unit 5A is let to Lifestyle Sports on a 25-year lease from May 2002 at a passing rent of €190,000 per annum, while unit 6 is let to Halfords on a 20-year lease from November 2010 at a passing rent of €200,000 per annum.
The park is situated on the Headford Road, approximately 1km from Eyre Square in Galway city centre. With a mix of large-scale retail space and office accommodation, it is Galway’s most established retail park, with other occupiers including Woodies, Aldi and Smyths Toys.
Michele McGarry, head of capital markets at Colliers, and Kevin McMahon, divisional director at Savills represented Iroko Zen in the negotiations.
“This high-yielding retail investment, with excellent covenants and an attractive weighted average unexpired lease term, is located in arguably the city’s best out-of-town location,” they said.
Iroko Zen’s latest acquisition comes just over six weeks after its purchase of the South Quarter Airside near Swords in north Dublin. for just under €18 million, from the Michael J Wright Group.
Arguably best known up until 2019 as the home of the Wright Venue nightclub, the property has since undergone a comprehensive redevelopment and transformation programme, and now contains a newly-developed remote broadcast and content production centre (RBC) and a mix of six retail/restaurant units.
The RBC, which measures 4,439sq m (47,791sq ft), was created to accommodate the content production requirements of California-headquartered e-gaming firm Riot Games.
South Quarter Airside and the Galway units represent Iroko Zen’s fourth and fifth investments in the Irish market.
Last September, the company completed two transactions, paying €12.2 million and €8.49 million respectively for Block P1 at Dublin’s Eastpoint Business Park and a portfolio of five buildings let and occupied as branch premises by Bank of Ireland in Counties Wexford, Longford, Tipperary, Cork, and Galway.