A high-yielding mixed-use shopping mall in the centre of Killarney, Co Kerry, is to be offered for sale at €
3.2 million through joint agents Savills and Tom Spillane & Associates. The Innisfallen Mall has the potential to produce substantially more than the current rental income of €349,000 if the next owner succeeds in letting the available space.
The mall is located in the centre of Killarney town, occupying a key site of just over half an acre, which is accessed off both Main Street, where there is a high footfall, and Beech Road, where there are two public car parks.
The mall has 30 units in all, extending to 1,681sq m (18,104sq ft). However, 14 of them – 41 per cent of the entire scheme – are currently vacant and a further five tenants are holding over on expired leases.
Denis O’Donoghue of Savills estimates the rent roll could be increased by a further €100,000 when the vacant units are let.
Alternatively a new owner would have the option to create a large anchor unit with up to 1,392sq m (15,000sq ft), which would simplify the management structure and enhance the overall customer experience, he said.
Even with the present line- up of tenants in place, the mall will show a yield of 10.5 per cent based on the asking price. When the remaining trading places are eventually let, the yield could be increased to 13.5 per cent.
The centre has a weighted average unexpired lease term of 15 years. One of the anchors, Milano, is paying a rent of €125,000 a year on a 35-year, upwards-only lease from 2000 with no break options. The centre also includes Mustang Sallys bar and nightclub, one of the most popular nightlife venues in Killarney.
All the indications are that the mall will be sold before the end of March.
The Co Kerry town is one of Ireland’s top tourist destinations and has a vibrant town centre.
