The prospect of immediate rental income and the promise of future residential development potential saw strong interest in the sale of the Applegreen petrol station on Clonskeagh Road in south Dublin.
Having been offered to the market at a guide price of €3.5 million last June, the property was acquired in recent weeks by a private Irish investor for €3.4 million.
The property, which is near UCD and Belfield and Richview office parks, is held by the Petrogas Group Ltd, trading as Applegreen, on a 21-year lease from July 2013 with just over 12½ years remaining to lease expiry and no break options. The passing rent is €247,500 per annum with the next rent review in July 2024.
Last year Applegreen accepted a takeover offer from Bidco, a company formed by Applegreen founders Robert Etchingham and Joseph Barrett and Blackstone Investment Group. The deal valued Applegreen at €718.1 million. Applegreen, founded in 1992, now operates 472 sites employing more than 10,700 people across the Republic of Ireland, the UK and the US.
The investment briefly comprises a petrol filling service station on a site of 0.21 acres. The service station itself includes four double-sided petrol pump terminals under a canopy with an automated car wash and service bay.
Busy deli
The station's retail unit incorporates a delicatessen with a strong trade thanks to its proximity to the Belfield and Richview office parks, which are home to a number of high-profile office occupiers including McDonald's Restaurants of Ireland and Flutter Entertainment (Betfair Paddy Power).
The property has a prime location on the Clonskeagh Road, at the junction of Beaver Row, and just minutes from Donnybrook and Ranelagh. It sits alongside a busy neighbourhood parade with occupiers including Harry’s Bikes and Bombay Pantry, and with the long-established Ashtons Bar and Restaurant nearby. The immediate area will be further enhanced upon the expected completion of 120 high-end apartments at the adjacent Paper Mills site.
Commenting on the sale of the Clonskeagh property, Michele McGarry of selling agent Colliers said: “This was a great opportunity to acquire a long-term investment opportunity let to a blue-chip tenant. The investment proposition was underpinned by the property’s excellent location in the affluent south Dublin suburb of Clonskeagh and a feasibility study showing the site’s potential for a 22-unit residential development.”
