Improving retail sector set to spark strong interest in €120m portfolio

One of the largest retail investment portfolios ever brought to market in Ireland was yesterday launched by joint selling agents Savills and Bannon with a guide price of €120m.

The Spectrum Portfolio consists of seven assets, including three in Dublin and another just outside Cork City, which produce a rent yield of 9% or approximately €11m per annum.

Director of Investments at Savills Ireland and Roderick Nowlan, Fergus O’Farrell said strong demand for the portfolio is expected as investors eye retail opportunities amid improving economic conditions.

“The retail sector is clearly reaching a turing point. Retail sales are steadily increasing, there is a dramatically improved labour market and the prospect of more neutral budgets are now feeding through to the retail economy. This hasn’t gone unnoticed by investors, who are now beginning to seek opportunities in this space.

“Therefore, we expect interest in the Spectrum Portfolio to be strong due to the diverse collection of assets on offer and its exposure to all sectors of the Irish retail market,” he added.

The portfolio includes:

* Douglas Court Shopping Centre, south of Cork City.

* Dundalk Retail Park, Dundalk, Co Louth.

* Quayside Retail Park, Sligo Town.

* Bloomfields Shopping Centre, Dun Laoghaire, Co Dublin.

* The Mill Shopping Centre, Clondalkin, Dublin 22.

* Kilbarrack Shopping Centre, Dublin 5.

Also included in the sale is a three-storey office block opposite the Mill Shopping Centre let entirely to Dublin City Council and the Office of Public Works.

All properties are funded by Lloyds Bank who appointed receivers to the portfolio originally touted as Project Thomond in media reports.

Anchor tenants within the assets include Tesco, Dunnes Stores, Woodie’s and Boots.

Substantial development opportunities exist, particularly at Douglas, according to Savills and Bannon.