Cushman & Wakefield and JLL have officially launched the sales process for The Square Towncentre, a suburban shopping centre in Dublin, with a price tag in excess of €233 mln.
The Square Towncentre is one of the last major single assets held by Irish bad bank Nama. Media reports in recent months indicated the asset would hit the market in September.
The scheme is effectively the town centre for Tallaght, one of Dublin's largest suburbs with a total catchment population of 1.3 million.
Kevin Donohue, head of investments at Cushman & Wakefield, and John Moran, CEO at JLL's Irish unit, are handling the sale. 'The Square Tallaght provides investors with an opportunity to control one of Dublin's largest regional shopping centres and offers the ability to participate in the Irish retail market at a time when retail sales are on an upward trajectory and the Irish economy leads the way in the EU,' they said in a statement.
'The asset offers investors long-term secure income with immediate ability to drive this forward via existing development and asset management opportunities, which will further enhance The Square as one of Irelands top shopping destinations.'
Unit ownership
The 53,651 m2 scheme was originally opened in 1990 and sits on a site of 10.9 hectares. Anchored by Tesco, Debenhams and Dunnes Stores, The Square Towncentre has a catchment area in the region of 22 million per annum.
The scheme incorporates 160 units, a food & beverage offering, a 13-screen cinema and 2,400 parking spaces A number of units in the scheme were originally sold to owner occupiers, individuals and to groups of separate investors.
Nama has consolidated its ownership position over the past six years. As a result the buyer of The Square Towncentre will hold 118 retail units, including the cinema, and have the controlling stake in the management company.
Nama's interest in the scheme is generating a net operational income of €13.97 mln, with a current weighted average unexpired lease term of just under seven years. Over 70% of this income is secured for over five years.
Development opportunity
Planning permission was granted in 2014 for the phased construction of two independent extensions at the northern and southern ends of the scheme. The northern extension includes a new two-level department store with a Gross Lettable Area (GLA) of 6,000 m2 and an additional eight retail units, with a total GLA of 7,920 m2.
The southern extension provides for a single level unit located off level 3 with a GLA of 5,525 m2. The extensions will see the existing car parking provision increase to over 2,800 spaces with the addition of a new six level multi-storey car park.
Big sales
Other major shopping centres in Dublin have already traded in the past 12 to 18 months. Bayerische Versorgungskammer (BVK), Germany’s largest pension investor, acquired Liffey Valley Shopping Centre in west Dublin for a reported €630 mln in December 2016.
Five months earlier UK REIT Hammerson and Allianz Real Estate became the owners of the 140,000 m2 Dundrum shopping centre following the pair's €1.85 Project Jewel loan portfolio acquisition.
US private equity giant Blackstone picked up the 112,000 m2 Blanchardstown for €950 mln in June last year.
