French investor Altixia REIM has entered the Irish commercial property market, paying €4.6 million for the College Green Collection, a portfolio of two prime retail properties let to US-headquartered coffee chain Starbucks and Canadian convenience store giant Circle K. The price paid represents a 23 per cent discount on the €6 million agent HWBC had been guiding when it offered the portfolio to the market on behalf of UK investor Henderson Park Capital last May. Altixia REIM has acquired the investment on behalf of its SCPI Altixia Cadence XII fund.
The Starbucks premises at 1-2 College Green (lot 1) occupies the corner position at the junction with Foster Place. The property comprises the ground floor and basement only and extends to 2,478sq ft (230.21sq m). The passing rent from Starbucks is €185,000 annually, with about six years remaining to lease expiry. Starbucks is the largest coffee chain in the world with nearly 35,711 premises established in 86 countries with a 2022 turnover of $32.25 billion. Having paid €2.5 million for this portion of the investment, Altixia stands to secure a 6.7 per cent net initial yield compared with the 5.34 per cent, which would have applied had it matched the €3.15 million guide price sought by Henderson Park.
The Irish Times understands Altixia completed its purchase of numbers 1 and 2 College Green last week, while its €2.1 million deal for Circle K’s premises took place last December.
Numbers 4-5 College Green (lot 2) occupies the corner position at the junction with Anglesea Street leading to Temple Bar. The property comprises the ground floor and basement only and extends to 3,070sq ft (285.21sq m). The passing rent from Circle K is €167,000 annually with a guarantee from Circle K Ireland Holding. Circle K is a wholly owned subsidiary of the Canadian-headquartered convenience store giant Alimentation Couche-Tard. The lease is for a term of almost 25 years from 2004 with about five years to lease expiry. In this instance Altixia is in line for a net initial yield of 7.2 per cent as opposed to the 5.33 per cent it would have received had it paid the €2.85 million guide price.
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Altixia was advised on the two transactions by Craig Kenny of Maples and Damien McCaffrey and Fearghal Lynam of BNP Paribas Real Estate. The vendor was represented by A&L Goodbody and Joe Bohan and Gavin Brennan of HWBC.
Commenting on the deal, a spokesman for Altaxia REIM said: “We are delighted to announce the acquisition of a local business in Dublin, symbolising our first foray abroad and testifying to our commitment to diversifying the SCPI’s assets. The real-estate complex, ideally located in the heart of Dublin, benefits from a secure rental situation and quality tenants.”
The Altaxia transaction follows other French acquisitions in the College Green area. These include BNP Paribas REIM’s purchase of the nearby Staycity Dublin Castle Aparthotel for €11.5 million in June 2022 and Remake’s €9 million deal for 14-16 Lord Edward Street in January 2023.
