Agent Cushman & Wakefield is guiding a price of €1.6 million for Fortunestown Shopping Centre, a fully let neighbourhood retail investment in Tallaght, southwest Dublin.
Located 1.5km west of Tallaght town centre and 1.5km southeast of Citywest business campus, the investment comprises seven convenience-focused retail units with about 80 surface car-parking spaces, on a site of circa 1.29 acres (0.52 hectares). While the centre is anchored by a SuperValu outlet, this unit was sold on a long leasehold and is excluded from the current sale. The leaseholder continues to contribute to service charges and insurance, however.
Fortunestown Shopping Centre’s current tenant line-up includes national and international brands, including Hickeys Pharmacy and Ladbrokes, accounting for approximately 40 per cent of the current annual rental income of €180.560. The remaining units are occupied by long-standing local tenants, including a newsagent, a hair-and-beauty salon, a Chinese takeaway, chip shop and a delicatessen. The tenant covenants are underpinned by a weighted average unexpired lease term of 10 years to expiry and eight years to break.
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The €1.6 million guide price equates to a net initial yield of 10.25 per cent, assuming standard purchaser costs of 9.96 per cent.
Adam Ghee of Cushman & Wakefield says: “Fortunestown Shopping Centre offers an opportunity to acquire an essential neighbourhood retail scheme in a densely populated residential area. With excellent lease terms, secure long-standing tenants and a strong local catchment, we expect strong interest from private investors, family offices and funds targeting stable, long-term income.”
