One of the best shops in Galway city centre is on the market for more than €8 million through agent Bannon. It is being sold on a sale-and-leaseback basis by books and stationary retailer Eason, which has occupied the building at 33 Shop Street for the past 30 years.
Eason is to take a 25-year lease on the premises at a rent of €525,000 per annum, and, given the guide price, this would reflect a net initial return of 6 per cent. A guarantee from Eason Operations Ltd will cover 10 years of the lease (but any payment in relation to this will be limited to two years' rent).
The retailer announced last year that it was to sell 13 properties in the Republic which could generate a €60 million windfall. Some €20 million of this would be transferred to its retail business, and the rest divided among its 220 shareholders. This disposal process will also include the sale of its flagship store on O’Connell Street in Dublin.
In January the retailer agreed to sell its 17,176sq m (184,886sq ft) St Margaret’s warehouse on 8.4 acres in north Dublin to Irish property fund Iput for €19 million. This marked the start of its property sales programme, which is now moving on to its retail assets.
The Galway sale – a prime asset – is very much about testing the appetite among investors for its retail portfolio. Further sales of its provincial stores are expected to follow shortly.
No 33, on a prime stretch of pedestrianised Shop Street, is a part two-storey and part three-storey building extending to 1,042.9sq m (11,226sq ft) with 834.1sq m (8,978sq ft) of retail space over ground and first-floor levels. This is considerably larger than most other stores on the street, and of a scale sought after by many modern retailers.
The open-plan retail area underwent complete refurbishment in 2013. It includes books, news and magazines at ground floor, and stationary and gifts on the first floor.
Nearby retailers include River Island, Tommy Hilfiger, Schuh, Lifestyle Sports, Holland & Barrett and Boots.
Brown Thomas and Edwards Square shopping centre are close by on William Street.
