British billionaire Mike Ashley’s Fraser Group has completed its purchase for €18.25 million of Galway city’s Corrib Shopping Centre from US private-equity giant Marathon Asset Management. The price paid equates to a net initial yield of 8.38 per cent based on standard purchaser’s costs of 9.96 per cent and the centre’s current rent roll of €1,681,707 per annum.
The Fraser Group’s acquisition of the Galway city scheme comes just over one year after its Sports Direct brand agreed a new 10-year lease on the 65,000sq ft anchor unit occupied formerly by Debenhams.
The Corrib Shopping Centre’s other anchor is Marks & Spencer, while other tenants include Carraig Donn, Peter Mark, Walsh’s Pharmacy and Meteor.
The sale which was handled by joint agents Cushman & Wakefield and Colliers comprised the freehold interest in the entire shopping centre and a long-leasehold interest in the multistorey car park, for which a profit-share structure is in effect. The scheme comprises about 100,000sq ft of lettable retail space and fronts on to Eyre Street, Bóthar Irwin and Bóthar na mBan.
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The centre has a current occupancy rate of 99 per cent with a weighted average unexpired lease term (WAULT) of 6.28 years to break option and 6.35 years to expiry.
