Fully let investment at Swords Plaza scheme guiding at €6.8m

The prospect of securing immediate and substantial rental income from best-in-class tenants on lengthy unexpired lease terms should see strong interest from private investors, family offices and funds in the sale of the Swords Collection, a mixed-use portfolio in the heart of Swords town centre in north Dublin.

The investment, which is fully let and occupied by tenants that include the fast-food giant McDonald’s and aviation-leasing specialist ASL Airlines Ltd, is being offered for sale by agent Cushman & Wakefield at a guide price of €6.8 million.

The weighted average unexpired lease term is 11.1 years while the weighted average unexpired lease term to the break option is 7.6 years.

The properties in the Swords Collection occupy a prominent position in the heart of Swords town centre, adjacent to Swords Main Street, the Pavilions Shopping Centre and Swords Central. The investment assets form part of Swords Plaza, a wider mixed-use commercial centre built in 1998, which extends to 101,285 sq ft (9,409.62 sq m). The centre has a 315-space double-level basement car park which is accessed off New Street.

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Both properties in the Swords Collection portfolio are connected and, in its entirety, comprises a modern four-storey over lower-ground building, extending to 27,290sq ft (2,535sq m), which has dual frontage to both the Malahide Road and Swords Main Street.

McDonald’s Restaurants of Ireland Limited trading as McDonald’s occupies the northern portion of the block, which faces Swords Main Street. McDonald’s comprises the ground, first and second floor, extending to 4,134sq ft (385 sqm). The passing rent is €160,000 per annum expiring in 2033 with no breaks.

Aviation House faces the Malahide Road and comprises a modern four-storey office, extending to 23,156sq ft (2,151 sq m). The office is fitted out to a high standard and serves as the corporate headquarters and main operational base for ASL Aviation Holdings, a global aviation company with airlines based in Europe, South Africa, Asia and Australia. The group comprises 26 companies including various aircraft leasing entities, eight airline operations, 160 aircraft and 3,000 employees drawn from 56 nations. ASL occupies the property on a 25-year lease expiring in 2035, at an economical rent of €17.63 per square foot, which equates to a total passing rent of €408,250.

ASL has recently agreed to remove its break option in 2025 and postpone it to 2030, which underpins its commitment to the location. It also has 25 car spaces in the basement car park, which provides direct lift access. The tenant entity on the lease is ASL Airline (Ireland) Limited, a subsidiary of ASL Aviation Holdings and has a Dun & Bradstreet rating of 3A 2, representing a tangible net worth of €21,730,000. For the year ending December 31st, 2022, the company reported turnover of €123 million and pretax profits of €55 million.

The €6.8 million guide price represents a net initial yield of 7.6 per cent based on the total current income of €568,250 per annum.

Peter Love of Cushman & Wakefield says: “This investment opportunity offers investors best-in-class tenants under excellent lease terms, in a prominent location in the heart of Swords, at a very attractive price.”