Allsop to auction 68 retail assets with reserves of €16m
The high-yielding Meakstown Shopping Centre in Finglas, Dublin 11, is one of the most notable investment properties going for sale at Allsop’s final commercial auction of the year at the RDS on December 9th.
A reserve price of €2 million-€2.4 million has been set for the centre which comprises five retail units, a creche, bar, restaurant and a gym. The nine units extend to 2,821sq m (30,364sq ft)and are all occupied, with the exception of the gym.Tenants include Boyle Sports, Hickey’s Pharmacy, Macari’s and Eurospar, with a weighted unexpired average lease term at 12.69 years.
Although the reserved rent stands at €660,140, several rent abatements are in place and two tenants are not currently paying rent, reducing the passing rent to €342,311. This provides for a net initial yield of 16.38 per cent, with the potential to enhance the return further through active management of the vacant unit and the two others not paying rents.
Allsop is also to auction a regional retail and warehouse portfolio with a reserve price of €2.08 million. The portfolio comprises two main street retail units in Mullingar and Tullamore as well as warehouses in Carlow, Dundalk and Longford.
The Allsop catalogue carries 68 commercial assets for next month’s auction when reserves will be set at €16 million. The auction house has achieved sales of €112 million to date in 2015.
Richard O’Neill, head of commercial auctions, said they had seen continued yield compression in the cities during 2015 and the auction should provide a good indication of market prospects in 2016.