The Eyre Square shopping center in Galway city center has been sold for 9.575 million euros.
While Colliers, who handled the sale, did not identify the buyer, The Irish Times understands the project was acquired by a fund managed by Davy Real Estate. The price paid is equivalent to a net initial yield of 9.78% after taking into account the standard acquisition costs. It also represents a 33% discount on the €12.75 million that Colliers guided when marketing the mall on behalf of US investment giant Marathon Asset Management last August.
While the Eyre Square Shopping Center comprises over 70 retail units and kiosks, the sale itself was limited to eight retail and center control units as well as open common space units. property. The eight retail units have a strong lineup of tenants, including JD Sports, Great Outdoors, Specsavers, Diesel, Starbucks and Vero Moda.
The units are currently producing rental income of €869,200 per year with a weighted average unexpired lease term of 6.24 years to terminate. The incoming investor will have the opportunity to immediately increase the rent by renting out the two vacant units.
The center also has direct access to the 450 parking spaces at Eyre Square car park. The building forms part of a combined shopping center with Corbett Court and Edward Square Shopping Centre, with direct access from Eyre Square, Williamsgate Street and Castle Street. Anchored by Penneys and Dunnes Stores, the program includes a mix of local, national and international retailers.
The Penneys are expanding into the centre, increasing the size of their footprint in Eyre Square by around 50%. The new store will have approximately 60,000 square feet of ground and first floor retail space.
The center has been the subject of considerable investment by Marathon, which has undertaken a major program of capital expenditure and refurbishment to provide a redesigned entrance from Eyre Square as well as the development of modern retail units and a restaurant.
Common space units include a number of short and long-term license agreements and include kiosks, stores, telecommunications towers and general mall revenue. They are spread over the two floors of the center and generate a current rent of €160,202 per year. The units have had consistently high occupancy, according to the selling agent, with an average income over the past five years of around €220,000 per year.
Kiosk operators include Café Express, Mark Twain and Over The Moon, with stores mostly manned by larger retailers with a presence in the centre.
Mast revenue comes from a number of well-known mobile providers, namely Meteor Mobile, Esat Digifone and Vodafone.
Michele McGarry, of Colliers’ Capital Markets division, said: “The opportunity has attracted considerable interest from investors, primarily domestic, given the attractive yield and high profile of the Eyre Square shopping centre.”