IIB Bank is set to buy the Ashleaf Shopping Centre in Crumlin¸Dublin X, for a group of its private investors. The 40 million-plus acquisition will show a net initial yield of between 5.25 and 5.75 per cent. Jack Fagan reports.
The sale, which is due to be completed before year end, comes at a time of intense competition between the leading supermarket chains for trading opportunities in the greater Dublin area.
As part of its expansion plans Tesco has just paid over €40 million for a 15 acre site in Naas with planning permission for a shopping centre while in Clondalkin Lidl has outbid a range of multiples and developers for a seven-acre town centre site by paying a record €30 million-plus for it.
The Ashleaf Centre opened in March, 2000, and has been trading exceptionally well, according to retail agents. The 7,432 sq m (80,000 sq ft) complex was developed on a high profile site of almost 4.5 acres at the busy intersection of Cromwellsfort Road and Whitehall Road West, just south of Crumlin village.
The centre is anchored by a 4,830 sq m (52,000 sq ft) Dunnes Stores supermarket and drapery store. There are a further 25 ground-floor shop units in addition to the Submarine Bar, one of the largest pubs in the city, which is not included in the sale.
Tenants in the centre include McDonalds, Car phone warehouse, Budget Travel, Health Matters, Unicare pharmacy, Graham O'Sullivan's restaurant, Cosgrave Meats and Books Now.
Ashleaf was developed by the Smith family headed by brothers Frank and John Smith whose business interests include the Submarine Bar.
Tesco's decision to acquire the entire shopping centre site rather than a supemrket at Monread Road in Naas is in line with its policy of going for an entire retail development.
The 15-acre site, which was sold by four local businessmen, has planning permission for a supermarket of 4,560 sq m, 14 shop units totalling 1,975 sq m, 9,500 sq m of retail warehousing, as well as a creche and restaurant facilities. The decision by the planners to include retail warehousing on the shopping centre site will surprise many because the same local authority has also granted permission for two other retail warehousing parks on the outskirts of Naas-one of them on the opposite end of Monread Road.
Tesco had failed in two previous attempts to find an alternative site to its cramped premises on the Blessington Road. It bougtht a 6.8 acre site at Oldtown on the Sallins Road from the developers of Millennium Park but its planning application for a supermarket was refused and a second attempt was not proceeded with.
The company is now expected to sell on the Oldtown site which is zoned for leisure and recreational use in the 1999 Naas Town Development Plan.
