A west of Ireland businessman has paid around €5 million for two property investments in the Edward Square shopping enclave in the centre of Galway city.

Simon Plunkett of Douglas Newman Good Commercial had been quoting around €4.5 million for the two shops, Cara Pharmacy and Warehouse, but because of the high level of interest was obliged to seek best and final offers before wrapping up the sale. The new owner will get a net return of 6.3 per cent on the acquisition.

The high level of bidding underlines the renewed interest by Irish investors in the repriced retail market. It will also be seen as a vote of confidence in the success of Edward Square, which links up with Eyre Square shopping centre.

About 15 months ago the remainder of Edward Square was sold to Signature Capital, a Dublin-based investment company, for €27.3 million in a deal that is showing a yield of 8.7 per cent.

The Cara Pharmacy Building has three floors of retail space and two floors of offices.

The company is paying a rent of €200,000 with a potential turnover top up limited to €225,000 under a 15-year lease from last August. The office space on the upper floors is let on a short term licence at €25,000 per annum. Cara has a break option after the tenth year.

The Warehouse fashion store is currently rented at €125,000 per annum under a 20-year lease from 2007 with a break option in 2023.