Sale-and-leaseback investment near Dublin Airport guiding at €12m

Agent Lambert Smith Hampton is guiding €12 million for a sale- and-leaseback investment next to Dublin Airport.

The sale of the property, a newly-constructed cold storage facility at the Food Central scheme in St Margarets, offers the prospective purchaser the opportunity to secure a 6.43 per cent net initial yield and at least 15 years of guaranteed rental income.

The investment opportunity is being created by way of a sale-and-leaseback to cold storage provider Kool4Logistics, and is guaranteed for the first 15 years of the tenancy by their UK parent company Oakland International. A tenant-only option agreement for an additional 10-year lease extension will also be in effect.

Built in 2018, the property extends to 2,675sq m (28,793sq ft). Full planning permission is in place for an additional 1,867sq m (20,099sq ft) which is due for completion in October 2019. The original facility and the extension which extends to a total of 4,422sq m (48,842sq ft) makes up the Phase 1 initial offering.

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Kool4logistics is in advanced discussions for the construction of an additional 3.047sq m (32,800sq ft), subject to planning permission. The additional space known as "Phase 2" is earmarked for completion by August 2020. Upon completion,a new co-terminus lease will be established for the remainder of the term for Phase 1.

Bids will be requested for the entire lot at a guide price of €12 million exclusive of VAT. Bidders will be requested to allocate funds proportionately to the sale and leaseback of Phase 1 and the forward fun ding of Phase 2, with payments by July 31st next and August 2020 respectively.

Phase 1 will generate an income of €501,143 per annum (€10.25 per sq ft per annum) for investors. Upon completion of Phase 2 in August 2020, the rent roll will increase to €837,343 per annum (€10.25per sq ft per annum).

David Scully, head of industrial and logistics at Lambert Smith Hampton, says he expects the asset to attract significant interest from both local and international investors.