Monopoly board: Entire Cork 'street' with hotel skips past its €9.5m guide
East Douglas Village has sold for c 10% over the April 2021 €9.5m AMV via agents Lisney
AN entire street, in Cork’s affluent Douglas suburb, has just been sold, for about €11 million, as other strong Munster retail complexes in Tralee and Waterford also come to market with far larger, multi-million euro price tags.
Changing hands in quick time, as the impact of Covid-19 on the economy and the retail market recedes, is East Douglas Village, a gathering of five buildings combing mixed uses typical of a city street and close to 100% occupied, with rent roll of €760,000 per annum.
It had come to market in April of this year with agents Lisney, seeking €9.5 million and reportedly got a surge of investor interest and has now been sold.
It’s understood the purchaser is a private investor, not a fund, and the Cork deal is over the line as larger Munster retail investments in Waterford and Tralee, guided at €24.5m and 55m are being offloaded by US fund Marathon, and which are likely to appeal to more institutional-style and scale investors (see below).
It’s understood that East Douglas Village made more than 10% over the €9.5m guide, but agent Lisney have declined to confirm any details of the transaction, which investment market sources say was closer to €11m after competitive bids.
When launched in April, the attractive investment held out a return of 7.3% NIY, with uplift potential touted on the current €761,00 rent roll. At a sale sum closer to €11m, it shows a return instead of 6.2% for its undisclosed private buyer.
The distinctive modern development, in brick and cut limestone, in the heart of Douglas village with a large and well-heeled residential catchment on its doorstep was delivered in 2000 on the site of a former funfair Pipers, by land owners George and Imelda Barry. Design was by JE Keating & Associates.
It’s close to the Fingerpost, a McDonalds Drive thru, two major shopping centres, bars and cafes, as well as a recently opened Aldi on the former cinema site, while planning permission for a Lidl next to the Aldi store was refused just last month.
The occupier mix at East Douglas Village includes 16 apartments, a bar/restaurant with 10-bedroomed hotel, apartments, three restaurants, offices and retail space, all close to 100% occupancy with new one or two new tenants coming along during the past year.
This swift investment sale comprised most of the entire East Douglas Village scheme, but excluded three apartments and unit five in Holbar House.
MEANWHILE, Waterford’s City Square shopping centre comes to the open market this week with agents Colliers carrying a €24.5m AMV, selling for US fund Marathon Asset Management who acquired it in 2015, for €21m.
The centre currently produces €1.58m in rent, with a large unit vacated last year by Debenhams, and this could be expected to rise to €2.6m when vacant space is let, it’s stated. The centre is anchored by Dunnes, whose space is in separate ownership. Tenants include River Island, JD Sports, Peter Mark, GameStop, Peter Mark and Holland & Barrett.
At the €24.5 million guide, the centre with weekly footfall of over 100,000 equates to a capital value of €175 psf, and a (NIY) of 5.71 per cent, with reversionary yield rising closer to 10% if fully let.
The Colliers sale offer of Waterford’s City Square comes after Marathon put Tralee’s Manor West Shopping Centre up for sale at the end of August guiding €55.2m with agents Cushman & Wakefield, having bought it in 2015 for €59 million.
Separately, Marathon has agreed a sale for its Parks Collection portfolio for c €78m, reportedly to the Marlet Group. It comprises the Poppyfield Retail Park n Clonemal, Belgard Retail Park in Tallaght, and the M1 Retail Park near Drogheda.
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