Westside Shopping Centre outside Galway city is expected to attract considerable interest when it goes on the market today at a guide price of €9.6 million.
The centre, which is full let, produces a net operating income of more than €750,000. About 40 per cent of this is secured by national covenants, including McDonald’s, Maxol, Boyle Sports and the Driving Test Centre managed by the OPW.
The investment will show a net initial yield of 7.25 per cent on the basis of standard purchaser costs of 8.46 per cent, according to agent Cushman & Wakefield. The centre has a weighted average unexpired lease term to break of over 13.75 years.
Developed in the 1980s, the Westside centre comprises 14 units together with a McDonald’s Drive Thru and Maxol petrol station extending to 2,330sq m (25,089 sq ft). The centre is anchored by Dunnes Stores with a 3,808sq m (41,000 sq ft) store and has 280 surface car-parking spaces. The Dunnes store along with some other units have been sold off on a long-leasehold basis.
Kevin Donohue of Cushman & Wakefield said the sale will give investors an opportunity to acquire a high-yielding asset with the benefit of long dated income and numerous asset management opportunities to enhance returns.
