Three established Irish retail parks known as The Parks Collection have been put up for sale by Savills and Cushman & Wakefield.
Belgard Retail Park in Dublin, M1 Retail Park in Louth and Poppyfield Retail Park in Tipperary are being sold by owner Marathon Asset Management individually or as one lot with a guide price of €78 mln for the entire portfolio. The sale reflects a net initial yield in the region of 8.43% assuming standard purchaser costs of 9.96%
Belgard Retail Park is fully occupied and anchored by B&Q, the largest home improvement and garden centre retailer in the UK and Ireland. The park extends to approximately 137,000 sq. ft. and there is further asset enhancement opportunity with planning permission in place to develop an additional retail warehouse unit on the north west of the site of an additional 2,404 m2 over two levels with 1,409 m2 of ground floor space and 995 m2 of retail warehouse/storage space at mezzanine level. The total current rent is approximately €3.13 mln per annum with a WAULT of 7.3 years. B&Q contributes approx. 67% of the income on a lease until 2028 with an upward only rent review clause.
Poppyfield Retail Park was developed in 2004 and comprises a mix of retail warehousing along with an ancillary neighbourhood centre. The total floor area is 138,000 sq. ft. with 393 surface car parking spaces. There are 7 large retail warehousing units, with the remaining 7 units classified as neighbourhood retail units. The park is 99% occupied and has performed extremely well throughout recent government restrictions.
Woodie’s DIY (with lease guarantee from Grafton Group) and SuperValu are the anchor tenants. The total current rental income is €1.43 mln per annum and a WAULT of approx. 7 years. Woodies and SuperValu contribute approx. 52% of the income both of which have seven and eight years respectively, remaining on their leases.
M1 Retail Park, is located just off the M1 Motorway in Drogheda, Ireland’s largest town. It provides a mix of retail, leisure and office accommodation extending to approximately 267,000 sq. ft. along with 600 car-parking spaces. Much of the scheme constitutes retail and leisure use (89%) and is anchored by Woodies DIY who occupy 52,585 sq. ft. The total current rent is approximately €2.44 mln per annum with a WAULT of approx. 8.4 years. Woodies contributes approx. 40% of the income on lease until Sept. 2030 with upward only rent reviews.
The scheme comprises two retail parades connected by the mixed-use office, retail and leisure hub known as Mellview House. Mellview House is a four-storey building providing 25,048 sq ft of modern office accommodation ,a 30,483 sq ft gym facility at ground floor, basement and mezzanine levels operated by Gym Plus and a number of other smaller retail units. In addition, The Pavilion, is a separate building and is home to Costa Coffee and TC Matthews with a recent new letting to Lanu Medi Spa.
There is additional site adjacent to M1 Retail Park which also forms part of the collection extending to approximately 27 acres. The land comprises of three adjoining plots with proposed zoning under the Draft Louth County Development Plan 2021-2027 as part Zoned A2 New Residential, part Zoned C1 Mixed Use and part Zoned B4 District Centre.
The vendor initially acquired two of the parks in the collection, Poppyfield and M1, as part of a larger portfolio in 2014 (which also included The Park, Carrickmines; Lakepoint Retail Park, Mullingar; and Four Lakes Retail Park, Carlow) while the third, Belgard, was acquired separately. The vendor has undertaken significant asset management of the assets and phased disposals of some of their individual assets in recent years and the offering of The Parks Collection now, is a further stage in this strategy.
A spokesperson for Savills and Cushman & Wakefield commented: ‘This Collection represents a unique opportunity to acquire a substantial retail park portfolio, comprising three established parks strategically located throughout Ireland with impressive tenant line ups and opportunities to increase the rent receivable over the coming years. We expect strong interest in the collection both individually and as an entire portfolio.’
