A major retail development under way in Sandyford, Dublin 18, is being offered for sale to investors. Jack Faganreports
PRIVATE equity syndicates and institutions are to be invited to forward purchase the retail element of a substantial mixed use development in Sandyford, Co Dublin.
The investment is likely to be of the order of €190 million, showing a net initial yield of about 4.75 per cent.
Fergus O'Farrell of Savills Hamilton Osborne King and Enda Moore of Hooke & MacDonald Commercial are inviting best bids by June 28th.
The Cork-based Fleming Group has begun construction of a vast residential, office and retail scheme to be known as Rockbrook on a key 11.4-acre site between the Stillorgan Luas Station and the newly completed Beacon South Quarter. The overall end value is likely to be over €1 billion.
Essentially, Fleming wants to bring in a partner to fund the entire retail element - to be known as The Boulevard - which will be at street level and will have designated car parking.
It will be developed in two phases and will have a total retail area of 21,467 sq m (231,070 sq ft). Present estimates suggest that when fully let it will produce a rent roll of about €9 million.
Fleming has undertaken to underwrite the rent for a period of two years after completion in respect of any unlet units.
As well as the retail element, the first phase of Rockbrook will also include 12,555sq m (135,142sq ft) of headquarter offices and 860 apartments.
A planning application by architects Horan Keoghan Ryan has already been submitted for the second phase which will have further offices and between 350 and 400 apartments in addition to the shopping facilities at street level.
There will be over 700 dedicated customer car-parking spaces at basement level. The development is due to be completed on a phased basis from March 2008.
With the shops already open in Beacon South Quarter trading well, the promoters of The Boulevard suggest that when their retail facilities are in place they will provide a "critical mass . . . a contemporary new town centre with about 44,000sq m (473,611sq ft) of retail space."
Flemings spent a formidable €245 million on assembling the large site for the Rockbrook scheme, paying €165 million for the former Allegro site of 7.7 acres and €80 million for a smaller piece of land owned by Aldi.
An estimated 448,000 people live within a 20-minute drive of Sandyford where there is continuing growth in employment because of the number of companies relocating there.
Once redeveloped, the former industrial estate will have 6,000 new homes to accommodate at least 12,000 residents.
The opening of the Luas green line and the M50 motorway have provided a major boost not only for Sandyford but for many other suburbs including Dundrum where the new town centre shopping facility is trading exceptionally well.
The investment opportunity being offered by the Fleming Group is likely to interest institutions, investment syndicates and private investors who have been chasing retail developments in recent years without much success.
Flemings own two leading leisure resorts, Fota Island in Cork and Inchydoney near Clonakilty in west Cork.
