RETAIL INVESTMENTS:A NEWLY developed supermarket let to Tesco is expected to be of considerable interest to a range of private investors when it goes for sale today.
Katie Horridge of DTZ Sherry FitzGerald is seeking offers over €2.5 million for the U-shaped, 456sq m (4,908sq ft) store on Tyrconnell Road in Inchicore, Dublin 8, which is rented at €114,144 per annum. At that price it would show a net initial yield of 4.1 per cent after acquisition costs are taken into account.
The 20-year lease from last October provides for five yearly upwards-only rent reviews and a break option after 15 years and six months.
Whoever buys the investment will be able to avail of valuable capital allowances. The property also has strong reversionary potential given the low base rent.
The supermarket is in a prominent position on Tyrconnell Road close to Bank of Ireland and Xtra-vision.
The ground floor unit forms part of a larger residential complex. Katie Horridge says she expects strong demand for the investment given the unrivalled covenant strength, security of income, tax allowances and good rental growth prospects.
