NAMA Release Parks Portfolio For Sale
NAMA has confirmed the scale and identity of its first retail park portfolio to be offered for sale on the Irish market. CBRE and DTZ Sherry FitzGerald have been appointed as joint agents to handle the sale. The Parks Portfolio consists of five retail parks, geographically spread across Ireland. Approximately 60% of the value is derived from the sale of a significant part of Carrickmines Retail Park known as Phase 1, The Park. The four other assets are M1 Drogheda, Lakepoint in Mullingar, Poppyfield in Clonmel and Four Lakes in Carlow. CBRE and DTZ are guiding €110 million for the Portfolio. The Parks Portfolio is generating an attractive net initial yield of 8.4%.
The sale will be of interest to a wide range of private equity firms and given the yield compression experienced in the office market it is also expected that the REITs and the funds will have an interest in the emerging retail investment market and the ability to benefit from asset management opportunities.
The Park in Carrickmines is south Dublin’s premier retail park. Phase 1 of the Park offers 203,170 sq. ft. of retail warehouse space and benefits from key tenants such as Woodies, PC World, Next and Halfords. The scheme generates a rental income of approx. €4.4 million per annum and has a low vacancy rate of 7.6%. Phase 2, which is not included in the sale, also includes a strong tenant line up to include household names such as TK Maxx, Heaton’s, Mothercare & Harvey Norman.
M1 Retail Park, Drogheda is approximately 30 minute drive north of Dublin and comprises approximately 258,188 sq. ft. of quality mixed use space to include retail warehousing, offices, leisure and restaurant facilities. M1 Retail Park also has development potential with adjacent zoned lands of approximately 31 acres which are included in the sale. The M1 currently generates a rent roll of approx. €2.8 million per annum with 35% of the income generated from national brands such as Woodies DIY, Smyth Toys and Heaton’s.
Located in Mullingar with 200 meters frontage to the N4, (the main Dublin to Sligo Road) is Lakepoint Retail Park. Built in 2001, Lakepoint was the first retail park to be developed outside Dublin and provides over 85,000 sq. ft. of space with the opportunity to develop a 2,000 sq. ft. restaurant/coffee kiosk space in the existing car park. Approximately 75% of the park is let, thus providing an opportunity for additional income potential. Situated at the entrance of the Park is IMC Cinemas which significantly adds to the overall footfall of the retail park. Lakepoint is producing an annual rent of approximately €772,000 per annum and has an attractive WAULT of 11.5 years.
Poppyfield Retail Park is located in Clonmel, the administrative capital of the south midlands region. The retail park benefits from a strong tenant line up with Woodies DIY as the anchor tenant along with Supervalu occupying approx. 42,000 sq. ft. and 32,000 sq. ft. respectively. Other tenants include Harry Corry and DID Electrical.
Poppyfield also benefits from a retail neighbourhood scheme which is included in the Park with occupiers including Carphone Warehouse, Meteor Mobile and Sam McCauley Chemist. The current rent roll is approx. €1.1 million per annum.
Finally, Four Lakes Retail Park is located in Carlow, one of the largest urban areas in Ireland, with a population of 23,000. The Retail Park is ideally located on Dublin Road, one of the main access routes to the M9 motorway. The park was constructed in 2008, offering 113,731 sq. ft. of retail warehouse accommodation. A drive-thru Supermacs is located at the entrance of the park adjacent to Maxi Zoo and PC World. The scheme is generating approx. €323,521 per annum and has a WAULT of 10.25 years. While a number of units within the development are currently unoccupied the park enjoys a high profile position with significant frontage onto the Dublin Road. Some of the unoccupied units could suit alternative uses subject to obtaining the necessary planning consents.
CBRE and DTZ expect good interest in the portfolio, given the scale and the geographic diversity of the individual assets together with the significant development and asset management opportunities.