A detached two-storey over ground level Iceland supermarket and overhead offices in Ballyfermot, Dublin 10, goes for sale today as an investment asset through agent Cushman & Wakefield.
Ciara Horgan of the selling agents is guiding in excess of £2.3 million (€2.7million) for the freehold supermarket and office complex which will show a net initial yield of 7.24 per cent assuming standard purchasers' costs of 4.46 per cent. The yield is due to rise to a minimum of 8.19 per cent by the time of the next rent review in three years.
Iceland’s 25-year lease of the ground floor supermarket and storage space to the rear of the first floor runs until February 2030. Unusually, the rent of £173,987 (€203,450) is payable in sterling and is due to rise to £196,850 (€230,185) in 2020 and £222,718 (€260,433)in 2025. At that stage there is a tenant-only break option.
The two-storey over ground level supermarket and office have an overall floor area of 792sq m (8,388sq ft). A 999-year long leasehold interest has been created out of the freehold title on part of the first floor and the entire second floor and let at a peppercorn rent.
Iceland’s UK parent company took back control of its Irish operation from a franchisee, the AIM Group in 2013. The Ballyfermot business has the benefit of a full guarantee by the parent company during the term of its lease.
Ms Horgan said the successful purchaser could bank on a secure income for eight years. The busy supermarket was ideally located within Ballyfermot village on the busy western side of Le Fanu Road adjacent to Grange Cross. There are 10 car parking spaces to the front.
