Savills and Cushman Wakefield have been instructed to sell two Irish regional shopping centres – Navan Town Centre (€62 mln) and Fairgreen Shopping Centre (€12.5 mln) – on behalf of Duignan and McCarthy.
Navan Town Centre generates a weekly footfall in excess of 115,000 people and is anchored by Tesco, Penneys, Dunnes Stores and Marks & Spencer. Other tenants include Boots, River Island, New Look, Dealz, Argos, Easons and Heatons. Developed in 1980, Navan Town Centre has been extended on at least 6 occasions since 1995 to meet tenant demand, the last taking place in 2009. The guide price of €62 mln reflects a net yield of 7.31% on net operating income (NOI).
Fairgreen Shopping Centre Mullingar is expected to achieve a price in excess of €12.5 mln, offering a net yield of approx. 8.7% on NOI. Constructed in 2005, Fairgreen is anchored by Penneys, who hold a long leasehold interest, while other tenants include TK Maxx, New Look, Dealz, Elverys, Dorothy Perkins and Costa Coffee. The centre provides a NOI of approximately €1.14 mln.
'Both sales will attract investor interest for different reasons. In the case of Navan, we expect interest from investors seeking to acquire a high footfall shopping centre, in a large commuter town. In the case of Fairgreen, we would expect the tenant line-up and attractive yield profile to gain attention. It’s a smaller lot size to that of Navan; however recent lettings certainly demonstrate expanding retailer's commitment to the centre,' commented Dessie Kilkenny of Savills.
'Navan Town Centre offers investors the opportunity to acquire the North East's premier shopping centre. Equally Fairgreen in Mullingar will provide an incoming investor with a well let centre to household names with an opportunity to grow the income and take advantage of the current upswing in consumer sales,' added Karl Stewart of Cushman & Wakefield.
