High Yielding Eurozone Property
If you are looking for a high yielding Eurozone property portfolio then an 8 strong property portfolio covering two southern Irish cities may well be of interest. There are 7 retail units and one office building. Some of the high street properties are let to brands such as fashion chain Coast and indigenous mobile operator Meteor. The entire portfolio is valued at €9.5m but individual units are available from €325,000 to €2.25m.
The portfolio in its totality will show an overall net initial yield of 9.1% on letting unlet space in an office block at a high profile University Technology Park. It is now being offered in one, or several, lots.
The portfolio contains a mix of locations, most of which are very central in the two cities. The properties also have mixed values, a variety of remaining terms on leases and a retail/office mix. For this reason it is likely to be sold in separate lots. It will have an appeal to a broad range of investors.
The total income from the seven retail units in this high yielding Eurozone property portfolio, not including the office space, is €664,000 per annum.
This particular sell-off is at the behest of an Irish pension provider selling off some of its smaller property holdings as part of a strategy of active portfolio management. It intends to focus its efforts on larger properties in its portfolio.
The group in question has purchased a number of larger assets, with an estimated outlay of over €600 million over the past few years, to bring its current Irish property portfolio to a value estimated to be in excess of €2 billion.
There may well be interest in this portfolio as there has been strong occupier take-up in the prime retail locations in southern Irish cities recently. International retailers such as Superdry, Starbucks, TK Maxx, Holland & Barrett and Pandora have all expanded their southern presence over the past couple of years.
The office building is a 20,000 sq. ft. modern, 3rd generation, two-storey building with 83 car parking spaces. It was designed to allow for single or multiple occupation. The building currently has two tenants, with one lease expiring in 2017. It currently produces €115,000 in rent but, if fully let, it is estimated that it would produce a rent roll in the region of €240,000. The asking price is €2.25m.
Tenants include FBD Holdings and DeCare Systems Ireland (DSI,) with the latter’s lease due to expire in 2017.