French investor Iroko Zen has completed its third acquisition this year and seventh deal to date in the Irish investment market, paying €1.425 million for the premises of Tesco Express on Tyrconnell Road in Inchicore, Dublin 8.
The property comprises of two adjoining ground-floor retail units, extending to 450.57sq m (4,850sq ft). The accommodation is laid out primarily for supermarket use along with staff facilities and a storage area.
The subject property is let to Tesco on a 20-year and five-months term from October 30th, 2007, expiring on March 31st, 2028. The lease incorporates CPI-linked rent reviews with cap and collar of 3 per cent and 1 per cent respectively. The passing rent is €98,000 annually (depending on good payment by the tenant).
The Tyrconnell Road premises is Iroko Zen’s second acquisition involving Tesco as tenant in the Irish market. The French investor previously acquired the newly constructed White Pines Retail Centre in Rathfarnham, Dublin 14, from Ardstone Capital for €10.14 million. The scheme includes a Tesco supermarket.
Tyrconnell Road is located approximately 5km from Dublin city centre and 2km from St James’s Hospital which will also shortly, be home to the new National Children’s Hospital
Tesco operates 164 stores around Ireland and holds 22.4 per cent of market share, with growth of 14.9 per cent year-on-year. With the strongest frequency growth amongst all retailers (+13.2 per cent year-on-year), Tesco also saw an increase in new shoppers in store, up 1.7 percentage points.
Tyrconnell Road is located approximately 5km from Dublin city centre and 2km from St James’s Hospital which will also shortly, be home to the new National Children’s Hospital.
Michele McGarry, head of capital markets at Colliers, says: “We are delighted to have concluded the acquisition of this Tesco Express on behalf of Iroko Zen. This is an excellent retail investment and is underpinned by an institutional covenant.”
Peter Love, divisional director at Cushman & Wakefield, acted on behalf of the vendor, a private Irish investor.