Leading agents JLL are to launch a new marketing campaign for a property investment with a difference – a highly successful Applegreen service station on the Stillorgan Road in Mount Merrion, Co Dublin.
Declan Sexton of JLL is guiding €10 million for the Ashurst Service Station which will give the successful bidder a net initial return of 6.7 per cent after allowing for the standard purchaser's costs.
A new owner can bank on a current rent roll of €700,000, which is due to rise to €840,000 from July 2019, €1,008,000 from July 2024, and €1,209,600 from July 2029.
The high-profile service station and retail outlet is to be sold on behalf of a private company which bought the 0.26 of a hectare (0.64 of an acre) site for a residential development but after encountering some planning difficulties ended up in 2010 with the modern Ashurst facility and Applegreen as tenants.
The lease is held by Petrogas Group Ltd, a subsidiary of Applegreen plc which is a major petrol forecourt retailer in Ireland with a growing presence in the UK and a small number of outlets in the US. The business operates more than 200 forecourt sites in the three countries and employs about 2,900 people.
Applegreen is expanding its operations after a successful IPO in June 2015 raised more than €60 million on the Irish and London stock exchanges. The Ashurst lease has about 9 years of secure income up until a mutual landlord or tenant break option in 2025.
In the meantime the service station benefits greatly from its strategic location on the southbound carriageway of the N11, one of Dublin’s busiest commuter routes, and within the affluent south Dublin suburb of Mount Merrion.
JLL says the sale offers investors “an excellent opportunity to acquire a high profile site with long income, let to a quality tenant company and with significant alternative use potential in the long term.”
