Having paid €78 million to acquire three of Ireland’s best-known retail parks at the height of the Covid-19 pandemic, developer Pat Crean’s Marlet Property Group and its funding partner M&G look set for a significant return on their investment.
The Parks Collection, which comprises Belgard Retail Park in Tallaght, Dublin 24, the M1 Retail Park in Drogheda, Co Louth, and Poppyfield Retail Park in Clonmel, Co Tipperary, is being readied for a sale in the coming weeks by agent Cushman & Wakefield, The Irish Times has learned.
While Mr Crean could not be contacted for comment on the matter, the portfolio is expected to command a guide price of about €120 million, or some €42 million more than the €78 million Marlet paid US investor Marathon Asset Management to secure ownership of the schemes in September 2021.
While news of the highly anticipated sale will likely prompt speculation in relation to Marlet’s plans for Manor West Shopping Park, which it acquired soon after, for €56 million in December 2021, it is understood the developer intends to retain ownership of the Tralee scheme.
Since acquiring the Parks Collection, Marlet has engaged in an intensive asset management programme at all three locations. In the case of Belgard Retail Park, the developer built a large new unit of 2,337sq m (25,155sq ft) which furniture retailer EZ Living has agreed to occupy on a new long-term lease.
At M1 Retail Park, work is at an advanced stage on the construction of a new phase to house a new Tesco supermarket of more than 4,181sq m (45,000 sq ft). All three schemes have benefited from ESG initiatives and had work undertaken to improve their overall aesthetics and presentation. The overall rent roll, meanwhile, has been increased from €7 million to over €9 million.
Belgard Retail Park has long been regarded as one of the foremost retail parks in the capital. Outside of its more recent addition of its new EZ Living unit, the scheme is occupied by a range of leading retailers including B&Q, Home Store & More, Dealz, Carpet Right, Halfords, Right Style Furniture, Burger King and Starbucks.
The total current rent is about €3.45 million per annum, or some €320,000 more than the €3.13 million it had been generating in 2021.
The M1 Retail Park comprises a mix of retail, office and leisure accommodation extending to a total of 24,805sq m (267,000sq ft), along with 600 car-parking spaces.
The addition of the new Tesco supermarket will increase the scheme’s overall footprint to 28,986sq m (312,000sq ft). The park is already anchored by Woodie’s DIY and its other tenants include Smyths Toys, Sports Direct/Brand Max, Dealz, Equipet and EZ Living.
The total current rent is now €4 million per annum, an increase of €1.56 million on the €2.44 million it had been generating in 2021.
The M1 scheme also includes Mellview House, a four-storey building comprising office space, a gym operated by Gym Plus and a number of other smaller retail units. Another building known as the Pavilion is home to Costa Coffee, TC Matthews, and Lanu Medi Spa.
M1 Retail Park also includes lands extending to to 11 hectares (27 acres) and comprises three adjoining plots with proposed zoning under the Draft Louth County Development Plan 2021-2027 for three uses, namely A2 New Residential, C1 Mixed Use and B4 District Centre.
Poppyfield Retail Park extends to 12,821sq m (138,000sq ft) and comprises a mix of 14 retail warehousing units, a neighbourhood centre and 393 car-parking spaces.
The park is 99 per cent occupied and anchored by Woodie’s DIY and SuperValu. Other tenants include Harry Corry, Maxi Zoo, EZ Living, World of Wonder and DID Electrical. The neighbourhood centre is occupied by Costa Coffee, Sam McCauley, along with a hair and beauty studio and fish-and-chips operator.
KFC also has a drive-through at the entrance to the park, which does not form part of the sale. The total current rental income is now €1.6 million per annum, an increase of €170,000 on the €1.43 million it had been generating in 2021.
