Galway retail park secured for €20.5m by Minaun Capital
Latest acquisition comes just one year after Minaun Capital acquired Mill Retail Park in Gorey, Co Wexford for €4.35 million
23 March 2023
The Wellpark Retail and Leisure Centre in Galway has been acquired in an off-market transaction for €20.5 million.
The new owner is Minaun Capital, a property investment vehicle established by the founder of online auction specialist BidX1, Stephen McCarthy.
After completing the purchase from a private investor, Minaun has secured ownership the retail park which comprises the nine-screen Eye Cinema complex along with a 550-space surface and basement-level car park.
The Irish Times reports that the scheme, which was developed originally by Gerry Barrett’s Edward Holdings at a cost of €75 million, has a strong tenant line-up. This includes Lidl, Woodies, Homestore & More, DFS furniture and Petmania, with Boots fitting out its new unit at present. The five-star G Hotel was not included in the sale.
Understood to be generating total current income of €1.9 million per annum, the Wellpark Retail and Leisure Centre is located in a 356,353sq ft site at the junction of Lough Atalia/College Road and the Old Dublin Road, 2km from Galway city centre and 1km east of the N6.
Minaun Capital can expect to secure net initial yield of 8.5%, assuming standard purchaser’s costs of 9.96%.
Just last year, Minaun Capital also acquired Mill Retail Park in Gorey, Co Wexford for €4.35 million. It reflected a net initial yield of 8.25% and represented a slight premium of 2% on the €4.25 million which MM Capital had sought when it offered the scheme for sale in November 2021.
Mill Retail Park briefly comprises five retail units ranging from 276sq m (2,966sq ft) to 1,505sq m (16,200sq ft). The Irish Times reports Irish home store Choice Homes is the largest tenant, with a lease expiring in 2033 and a term-certain of about six years. Iceland, Maxi Zoo and Polonez occupy the remaining three main units. The scheme contains an additional 168sq m (1,811sq ft) Costa Coffee pod in the car park.
“Minaun Capital is delighted to add Wellpark Retail Park to its growing commercial property portfolio, and continues to seek well-located retail assets in both the north and south of the island,” said Johnny O’Connor of Bidx1, who acted on behalf of Minaun.