Developer Pat Crean's Marlet Property Group looks set to deepen its involvement in Ireland's retail sector with a €56 million deal to acquire Manor West Shopping Park in Tralee, Co Kerry.
Although the proposed purchase has yet to be completed, it will be seen as a significant vote of confidence in regional retail parks and their resilience, both in the face of the Covid-19 pandemic and the ongoing growth of online shopping.
News of the deal comes just three months after The Irish Times reported on Marlet’s agreement to buy three more of Ireland’s foremost retail parks from Manor West’s owner, US investor Marathon Asset Management, for about €78 million.
The Parks Collection portfolio, as it is known, comprises Belgard Retail Park in Tallaght, the M1 Retail Park near Drogheda, Co Louth, and Poppyfield Retail Park in Clonmel, Co Tipperary.
While Marathon continues to divest itself of the Irish property portfolio it built up in the years following the financial crash, its retail interests would appear to offer attractive opportunities for their incoming owners.
Manor West for its part comes fully occupied by a strong selection of international and Irish retailers. The Tralee scheme is anchored by Harvey Norman and Woodies DIY, with a lease guarantee from the company's owner Grafton Group. Other notable tenants include Tesco, TK Maxx, Next, Homestore & More, Smyths, Currys PC World, Petmania and Halfords. The park is 100 per cent occupied, with Danish home group JYSK and pet shop Maxi Zoo two of the more recent tenants.
Manor West’s total current rent receivable is €5,342,460 per annum and the weighted average unexpired lease term (Wault) is 6.3 years to break options and 7.2 years to expiry. Tesco, The Range, Woodies, Harvey Norman, TK Maxx and Smyths Toys account for a combined 57 per cent of the scheme’s overall rental income.
At 32,549sq m (349,403sq ft), the park sits on a site area of about 11.74 hectares (29 acres), with in excess of 1,000 surface car parking spaces. The park itself is split across two different sections: the retail park and shopping centre.
The retail park offers further development options subject to planning permission, as well as potential opportunities to extend tenant leases and carry out rent reviews.
Both Pat Crean and the selling agent, Cushman & Wakefield, declined to comment on the Manor West sale when contacted by The Irish Times.
