Kilbarry Shopping Centre in Waterford back on the market

WATERFORD’S Kilbarry Shopping Centre, anchored by SuperValu and dating to 2000, is valued at €16 million as part of the four-lot €80m retail portfolio called SV4, which is brought to market this week by Savills.

It’s the second largest of the four retail investments in a grouped sale of supermarket/retail assets, previously sold as part of Project Aspen’s loan sales by Nama, and acquired by Starwood Capital, Catalyst Capital and Key Capital at a significant discount.

Project Aspen was one of the first major non-performing loan (NPL) portfolio sales undertaken by Nama, a mix of offices and retail. 

Since acquiring it for c €200m in 2013 (25% of its c €800m original loan value) the current vendors Starwood/Key/Catalyst have secured the Musgrave Group Plc as guarantor on all four of the SuperValu stores (previously run by SuperQuinn) being offered in SV4’s coming sale.

Agents Savills say the €80m supermarket collection sale, in lots, is one of the most significant retail offers in 2016, reflecting a net initial yield of 6.44% for new owners at the guide. 

Three of the SV4 Collection supermarket and shopping centre assets are in Dublin and one’s in Kilbarry Waterford, and are being sold by private treaty in individual or collective lots.

Most valuable is the Lucan Shopping Centre, with other occupiers including Dunnes Store, Starbucks and McDonalds, offered at €40m-plus or a net initial yield (NIY) of 6.45%.

SuperValu schemes in Ranelagh and Rathgar are each offered at guides in excess of €12m each, at NIYs of 5.89% (Ranelagh) and 5.97% (Rathgar)

In Waterford, the Kilbarry Shopping Centre 2km from the city centre is SuperValu’s main presence within the city, and has a NIY of 7.18% based on a €16m valuation. 

Kilbarry Shopping Centre is described as a “modern regional shopping centre investment”, built in 2000 on 5.45 acres and has 66,555 sq ft of commercial space at present. 

SuperValu pay 83.38% of the total current rent of c €1.2m pa, and there’s further development/income scope.

In all, if bought as one lot, the collection provides scale, at 247,000 sq ft of retail, at passing rents of €5.38m (SuperValu underpins 68% of this) and a WAULT of 13.2 years.

At present, SuperValu has 222 Irish stores, with five new openings in 2016 and it holds 25% of the country’s supermarket trade.

DETAILS: Savills 01-6181300


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