Fairgreen Shopping Centre Mullingar - Investment Opportunity
Dublin, 26th Sep 2018 – Property advisors CBRE are to offer Fairgreen Shopping Centre in Mullingar for sale by Private Treaty. Fairgreen Shopping Centre is a prominent retail scheme in the centre of Mullingar Town comprising 5,511 sq. m. (59,321 sq. ft.) of high quality retail accommodation. The scheme is 85% let and producing a net rental income of approximately €685,029 per annum (including car park income). The quoting price of €8.6 million represents a net initial yield of 7.34% and a capital value of €145 per sq. ft. Opportunities for asset management will present reversionary potential in the investment, which provides the opportunity to increase the yield closer to 9.40%
Fairgreen Shopping Centre was constructed in 2005 and has since established itself as an indispensable retail scheme in Mullingar town, anchored by Penney’s (owner occupied) and TK Maxx. Costa Coffee joined the scheme in 2016 and have proven to be a positive footfall driver. Footfall in the scheme is currently 1.5 million per annum. The scheme comprises 8 retail units, consisting of 2 anchor units and 6 retail units laid out in a linear mall. In addition to the anchor tenant’s retailers include New Look, Elvery’s and Dealz. There are two vacant units in the scheme which comprises approximately 372 sq. m. (4,000 sq. ft.) and 465 sq. m. (5,010 sq. ft.) respectively. We would estimate that the ERV for this space is in the region of €15 - €20 per sq. ft. allowing a potential purchaser to grow the income by approx. €140,000 per annum. The centre generates additional income from the underground car park, which has 300 parking spaces.
There are a number of ways in which an incoming purchaser can implement asset management initiatives, including the re-gearing leases, leasing vacant space and increasing commercialisation within the mall. The centre has a strong and complimentary tenant mix, strong anchors and a good profile which allow it to consistently attract footfall and trade well.
We believe Fairgreen Shopping Centre is an exceptionally strong retail scheme. The centre is performing very well and serves a noteworthy purpose in Mullingar Town. The scheme is supported by two very strong anchors and a complimentary tenant mix. The scale of the centre means that it can be easily managed. The scheme will appeal to those who are looking to complete short term asset management and subsequently benefit from a fully let scheme.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE U.C., (CBRE Ireland) registered in Ireland, no. 316570. PSRA Licence No. 001528 is the country’s largest commercial real estate services company with offices in Dublin and Cork. Currently employing over 135 employees, we work with occupiers, investors and developers of office, industrial and logistic, retail, hotel and healthcare property, providing strategic advice and execution for property sales and leasing; tenant representation, corporate services; property and project management; appraisal and valuation; development services; investment management and debt advisory; business rates and compulsory purchase and research and consulting. Please visit our website at www.cbre.ie