€123m capital package

As the sell-off of a portfolio of three Irish shopping centres in Cork, Clonmel and Balbriggan moves to a second round, with three bidders reportedly all over €135 million, a second very sizeable portfolio of Dublin shops and offices comes for sale this week, guiding €123m.

€123m capital package

Colm Luddy of CBRE, acting jointly with Savills, says the Capital Collection with over €7m in rental income “is one of the most significant property investment sales of 2014 to-date.”

Targeted at international investors and Irish REITS, it comprises quality retail and office buildings in the greater Dublin area, across eight properties.

The portfolio is available singly, or in multiple lots, with several at the €25m-plus level and extends over 330,000 sq ft of income earning property, with 60% of rent-roll from shops and 40% from offices.

There is 26,000 sq ft currently vacant and thus scope to grow the €7.3m income stream a bit more: it’s currently producing a 5.65% return based on the guide price.

The lots include offices, such as Spencer Dock’s 110,000 sq ft Grade A Kilmore House offices, guiding €25.3m, and 44,000 sq ft of offices, guiding €26.2m at 20 on Hatch, Hatch Street.

Retail offers include the Nutgrove Centre, Rathfarnham, by the shopping centre and retail park, guiding €11.9m, and retail investments at 18-21 Henry Street & 6/8 GPO Arcade by Arnotts and the ILAC Centre with tenants HMV, Vision Express, Boots, Stars & Stripes and Tiger. Quoted price here is €26m.

Describing the mix as a good balance of office and retail, agents Fergus O’Farrell of Savills and CBRE’s Colm Luddy note “this is an exceptional collection of Dublin-based assets, offering investors prime opportunities in both the retail and office sectors.

“Given the lot size of both the individual properties and the entire collection, along with the diversity of the assets on offer, we would expect significant interest from both national and international investors.”.

Meanwhile, bids have gone to second-round level on Project Acorn, over the €130m float level quoted in May by Bannon and JLL, for three Irish shopping centres, with 120 tenants, including the 300,000 sq ft Blackpool Shopping Centre.

Also in the Project Acorn mix which has a €13.8m rent roll and 9.5% return are Clonmel’s 130,000 sq ft Showgrounds Centre and Balbriggan’s 180,000 sq ft Millfield Shopping Centre, all being sold by Nama.

Understood to be in pursuit are Kennedy Wilson, Kildare Partners, and Orion Capital Managers with Quadrant Estates.

* Details: CBRE, 01-6185500; Savills, 01-6181300; Bannon, 01-6477900; JLL, 01-6731600

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