Castletroy Shopping Centre in Limerick sells for €3.425m

A shopping centre on the outskirts of Limerick city with around 60 per cent of the retail space vacant has been sold on behalf of Nama for €3.425 million – more than 50 per above the guide price of €2.2 million.

Commercial property advisers QRE received 12 bids for Castletroy Shopping Centre, including two from UK investors, before knocking it down to a Limerick-based development company, Urban Green Private.

The centre has 8,604sq m (91,547sq ft) of retail space on a site of 5.25 hectares (13 acres) with 720 car-parking spaces. The sale included a one-acre development site.

The main enclosed mall is laid out predominantly over one trading floor although some units have additional space at mezzanine level and a few trade from the first floor. The centre is anchored by owner-occupier SuperValu who trade out of 3,994sq m (43,000sq ft).

The 24 mall units extend to 4,203sq m (45,247sq ft) and include Lloyds pharmacy, An Post, a florist, beauticians, health food store, Hooke & Ladder restaurant and a drive-through McDonald’s fast food restaurant.

The shopping centre was producing a rental income of €365,000 per annum but service charge voids reduced the net income to €200,000.

However, Conor Whelan of QRE said there was huge scope to enhance the value of the centre by leasing the remaining units on competitive terms and reducing the serviced charge voids. He said his agency had received numerous inquiries from traders looking to lease shop units.