Large mixed use development in Westport for €8.5m

A substantial apartment, retail and office development beside the railway station in Westport, Co Mayo, is to be offered for sale from today at a significant discount.

Joint agents Savills and Tuohy O’Toole are guiding €8.5 million for Westpoint, the mixed use project funded by KBC Bank and now to be sold on the instructions of receivers Grant Thornton. It was developed in 2007 by the Galway-based businessman Pádraig Connolly, who used Sisk to handle the construction.

The Westpoint scheme on Altamount Street is dominated by 87 apartments, as well as a retail element with seven commercial units and a Tesco anchor outlet which is not included in the sale.

The asking price set by the selling agents reflects a gross yield of 10.6 per cent and depending on how the guide price is analysed, the average value of the apartments works out at an attractive €75,000 each. The guide price reflects a capital value of €1,033 per sq m (€96 per sq ft), which is well below replacement costs.

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Variety of styles

The 87 apartments have a variety of styles and sizes and include 12 one-bedroom units, 61 with two bedrooms and 14 with three bedrooms. The residential accommodation is located in three blocks, all with adequate car parking.

With all but one of the 87 apartments already let and two of the seven commercial units occupied by Boots and Wild West, the annual rent roll comes to €941,240. The commercial element is spread over two blocks, with four ground floor properties located in block B and a first-floor leisure facility available and extending to 1,377sq m (14,821sq ft). Block E has two vacant office units extending to 192sq m (2,066sq ft).

Paul Callanan of Savills said the existing yield profile showed there was potential to grow the income through asset-management initiatives and bulk discount.

Peter Tuohy of the Westport-based Tuohy O’Toole said the town had “incredible appeal” as a lifestyle location for full-time residency, as well as a holiday destination. Within the town, Westpoint was the only scheme of its type and scale and was probably the largest in Mayo. He said the versatile layout afforded an investor the opportunity to maintain the entire scheme or subdivide it and arrange part disposals with ease in both the commercial and residential elements, if that was desired.