The 30-unit shopping mall, which opened around 2000 and which was developed by local firm WK O’Connor, has come up for sale this week for Nama, with a price guide of €3.2m and has a current rental income of €349,000.
Milanos (part of Pizza Express) pizzeria pays the lion’s share of the rent, €125,000 pa, and another strong trader is Mustang Sallys Bar and nightclub. Some 40% of the 18,000 sq ft complex currently is empty, allowing potential for further uplift and alterations.
Innisfallen Mall is centrally located in the town, with a portion onto Main Street (by Milanos) and is near two car parks on Beech Road, close to several leading hotels such as the Malton and the the Plaza, in an area of high footfall.
Innisfallen Mall is brought to market with Killarney agent Tom Spillane & Co, and Denis O’Donoghue of Savills: they seek offers of more than €3.2m and they say there’s a healthy investment market locally, while at the price and with the returns available they can also expect interest from investors further afield.
Other occupiers in the Mall — named after Innisfallen Island in the Lakes of Killarney, home to fame abbey and the origin of the Annals of Innisfallen — include a Specsavers, Dominos and a Gala shop.
The joint selling agents describe the offer as “a high yielding mixed use investment opportunity in one of Irelands most vibrant towns.”
Agenbite, trading as Milanos, occupies 16 Main Street with 2,734 sq ft restaurant and 370 sq ft store, at €125,000 pa and there’s 20 years unexpired on a 35-year lease from 2000, with no break clause. There’s a weighted average unexpired lease term of 15 years.
“There’s a significant opportunity to improve the performance of the Mall, as 14 units or 41% of the scheme with 7,490 sq ft is currently vacant,” says Denis O’Donoghue of Savills.
Five other tenants, with 2,655 sq ft, are holding over on expired leases and it’s suggested new lets could add €100,000 to the income, or allow for development of an anchor of up to 15,000 sq ft to simplify management.
One of the units, No 25, is in separate ownership.
The investment sale offers an initial yield of 10.5% and a reversionary yield of 13.5%, notes Tom Spillane, adding “it’s a rare opportunity to acquire a strategic foothold in a prime Killarney location which offers strong income profile, with development potential, subject to planning permission.”
Savills, 021-4271371; Tom Spillane & Co, 064-6633066