Search

17/09/2021

Shopping centre on the market with multi-million euro asking price

 Waterford shopping centre on the market with multi-million euro asking price

US investment fund Marathon Asset Management has put Waterford’s prime City Square Shopping Centre on the market for €24.5 million.

City Square is being brought to market by agents Colliers on behalf of Marathon. 

It enjoys a prime retail pitch in the heart of Waterford forming part of the  main retailing destination in the city centre, with pedestrian access from three entrance points – Peter Street, Michael Street and Arundel Square.  

The centre is currently producing €1.58m per annum from a strong tenant line up, anchored by Dunnes Stores (not included in the sale), the key tenants include River  Island, JD Sports, Peter Mark, GameStop, Peter Mark and Holland & Barrett. 

It was recently upgraded and extended with a significant capital expenditure programme. The works included an expansion of the food court, additional retail units and  general mall improvements. 

Over two retail floors, including a two storey department store (formerly occupied by  Debenhams) and 34 retail units and kiosks.

It has a current average weekly footfall of approximately 110,000.

The sale includes the former Debenhams department store, which comprises 80,000 sq.ft of prime retail space over two floors. The well configured space lends itself to a single or multi lettings.

Total Market Rent is assessed at excess €2.6m per annum on the successful letting of the vacant units. 

The centre benefits from direct access to a 450 car park, accessed via High Street.

The centre is currently generating total rental income of €1.58 million a year, with expected total market rent of more than €2.6 million a year on the successful letting of the vacant units.

The centre’s €24.5 million guide price equates to a capital value of €175 per sq ft, a net initial yield (NIY) of 5.71 per cent and a reversionary yield of 10 per cent on the re-letting of the vacant units.

Michele McGarry, head of capital markets with Colliers, who is handling the sale on behalf of Marathon, says City Square offers plenty of potential for a new investor.

“We expect strong interest in the sale of City Square on behalf of domestic and overseas buyers with an appetite for top-quality retail investments. The immense asset management opportunities available offer the buyer a blank canvas to vastly improve the rent roll and to add value,” she said.

More News

Buy the e-paper of the Donegal Democrat, Donegal People's Press, Donegal Post and Inish Times here for instant access to Donegal's premier news titles.

Keep up with the latest news from Donegal with our daily newsletter featuring the most important stories of the day delivered to your inbox every evening at 5pm.