Savills, JLL launch marketing of €162m retail park portfolio in Ireland

Property advisers Savills and JLL have launched the marketing of the National Portfolio of five Irish retail parks in receivership.

Two separate receivers have appointed Savills and JLL to sell the portfolio. The guide price of €162 mln equates to an initial yield of 7.2%. This is based on current annual gross income of €12.2 mln. The portfolio has a weighted average unexpired lease term (WAULT) of 10 years.

The 101,000 m2 portfolio is 'the largest Irish real estate opportunity to come to the market in terms of its overall floor area', the advisers said.

Domhnaill O’Sullivan, investment director at Savills Ireland, commented: 'This is an excellent time to invest and acquire retail in scale while rental levels are recovering on the back of improving consumer sentiment. As a retail park portfolio, there are significant synergies in terms of dealing with existing tenants across multiple schemes and more importantly new tenants looking to access the market.'

John Moran, managing director of JLL Ireland, added: “The scale of this portfolio gives investors scope to establish a significant retail park platform in Ireland and to benefit from the rental growth prospects we anticipate in the retail market.'

Three lots
The portfolio will be available in three lots. Lot 1 comprises Nutgrove Retail Park (18.116 m2) in Rathfarnham, south Dublin. The guide price of €62 mln reflects an initial yield of 6.33%.

The second lot features four regional schemes: Letterkenny Retail Park (35,3000 m2); Sligo Retail Park (24,150 m2); Tullamore Retail Park (15,800 m2) and Deerpark Shopping Park (13,000 m2) in Killarney. The guide price for Lot 2 is €100 mln, which equates to an initial yield of 7.78%.

Lot 3 encompasses the entire portfolio.

Nutgrove Retail Park and Deerpark are for sale on the instructions of receiver, Simon Coyle of Mazars. Receivers Kieran Wallace and Patrick Horkan of KMPG have authorised the sale of the three other regional assets.