The new commercial property season has gotten under way with the launch of a number of office and retail investments as well as sites for commercial and residential developments.
The most notable single investment going for sale at this stage, Swords Central Shopping Centre, is expected to be of interest to both Irish and overseas investors when it is offered for sale at €21.5 million – a valuation that will give new owners an initial return of just under 6 per cent.
The 13-year-old centre produces a rental income of €1.3 million from 12 shops with 278sq m (30,000sq ft) of retail accommodation and a 320-space car park producing an average annual income of €280,000. Tenants have a weighted average lease term to run of 5.6 years.
The anchor tenant, Penneys, owns its store and also benefits from a strong line-up of tenants, including , More 4 Less, The Works, An Post, Holland & Barrett and Specsavers. The last vacant shop in the centre, extending to 69sq m (742sq ft), is available to rent near the mall entrance at €60,000 per year.
Max Reilly of selling agent JLL said he expects considerable interest in the investment, given that Swords is one of the fastest growing towns in Ireland and is expected to benefit from the planned development of the new Metro link to Dublin Airport and the city centre.
Swords Central provides a direct pedestrian link between the main street in Swords and the Pavilions shopping centre, which is 50 per cent owned by the UK property group Hammerson and its joint venture partner, Allianz Real Estate. The remainder of the share holding is held by Irish Life and Iput Property Fund.
It is generally expected that one or all of these institutions will become the new owner of Swords Central.
