RETAIL PARK, LIMERICK - Prime Retail Park Investment Opportunity For Sale by Private Treaty - City East
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R E TA I L PA R K , L I M E R I C K Prime Retail Park Investment Opportunity For Sale by Private Treaty
Modern retail park extending to 16,607.8 sq m (178,764 sq ft)
The Asset Modern fully let retail park extending to 16,607.8 sq m (178,764 sq ft) Comprising 7 retail warehouse units Situated on the Ballysimon Road 4km from Limerick City Centre and 1km from the M7 Motorway, a major arterial route linking Limerick to Dublin Excellent tenant mix including B&Q, Harvey Norman, Halfords, Home Store + More and EZ Living Current rent roll of more than €2.3 million per annum Attractive WAULT of circa 8.4 years Additional income potential through the form of turnover top-ups and future development opportunities on site with the benefit of P.P For the avoidance of doubt please note this is a property investment sale and the Tenants are unaffected
AUDI BMW Delta Retail Park
M7
M7
DUBLIN
LIMERICK CITY
Northern East Point
Trust Retail Park
C I T Y E A S T R E TA I L PA R K
Location
CityEast Retail Park is located approximately 4kms south east
of Limerick City, benefiting from extensive frontage onto the
Ballysimon Road. The park is positioned just off Junction 29 of
the M7 motorway, one of Ireland’s busiest arterial routes.
R464
R463
Ballynanty
R445 R463
R464
Castletroy
R445
Limerick R445
R445 M7
Groody Park
R527
Garryowen
Ballysheedy
N18 R511
Galvone
R526
R511
R512
N18
M7
Dooradoyle
M20
Limerick City is the regional capital Limerick is well connected and easily CityEast Retail Park is located within an
of the south west of Ireland and the accessible by all modes of transport. established commercial location. In the
third largest city overall. The city It benefits from an extensive road / immediate area around the park there is
has a population of 94,192 as per motorway network with drive times to also Garryglass Industrial Estate, Delta
the 2016 census. Limerick is located Dublin in 2hrs 25mins, Cork 1hr 40mins Retail Park, Eastway Business Park, East
approximately 202km south west of and Galway in 1hr 20mins. There are Point Retail Park, Monaclinoe Industrial
Dublin (M7), 102km north of Cork (N20) local city bus services operating as well Estate and Crossagalla Industrial Estate,
and 107km south of Galway (M18). as expressway routes direct to other all located on the Ballysimon Road. City
towns and cities. There are numerous East Plaza, a modern office development
Limerick is one of three cities which
rail connections from Limerick (Colbert) is located directly opposite the retail
makes up the Cork-Limerick-Galway
Station connecting Dublin (Heuston) park where Northern Trust are the main
corridor along the west of Ireland and
in 2hrs, Cork (Kent) in 1hr 25mins tenant.
has a population of over 1 million people.
and Galway (Ceannt) in 1hr 55mins.
The city lies on the River Shannon and is
Shannon International Airport is located
a popular tourist destination, it also acts
33km to the northwest of the subject
as a gateway to County Kerry, Ireland’s
property providing various domestic and
main tourist destination outside of
international connections.
Dublin.
P R I M E R E TA I L PA R K I N V E S T M E N T O P P O R T U N I T Y
Catchment Analysis
Dunkerrin
Ballyslattery Ballymoylan Nenagh Barrisnoe
Ennis
M7
Craglea
Broadford
Cooleen
O’Briensbridge
Ballynacally Ahane
Shannon
M7 Upperchurch
Limerick Ahane
Murroe
Milltown
(Asceaton) Clarina
M20 N24
Foynes Cliggin
St Patrickswell Carrigoreilly
Ballagh
Dromkeen
Curra More N20
Fedamore
N24
Rathkeale Croom Cashel
Meanus
Carrickettle
Carrickerry N21
Tipperary
Newcastle
Tipperary
Kilmeedy Rockhill
Kilmallock
Limerick is well connected and easily accessible by all
modes of transport. It benefits from an extensive road /
motorway network with drive times to Dublin in 2hrs 25mins,
Cork 1hr 40mins and Galway in 1hr 20mins.
C I T Y E A S T R E TA I L PA R K
Population Growth 2006 - 2016 Household Expenditure
Average Weekly Spend €790
+6% +2%
Total Expenditure
€63,327,489
2006 2011 2016
205,362 216,701 221,581
Workforce Housing Goods & Services
€13m €11m
51%
of catchment area is within the
A, B, C1 Socio-Economic Group.
Food Transport
€9m €9m
Permanent Households total 80,184
2,490 (not stated)
1,448
4,632 12,927 Recreation
3
4
0
& Culture Fuel
€6m €3m
2 Per household
Clothing Alcohol
1
€2m €2m
26,695 31,992
Population by Age
Catchment 221,581 Ireland 4,761,865
< 15 years
29,628 46,227 637,567 1,006,552
13% 13%
15 - 24 years 52,421 21% 1,135, 003 21%
25 - 44 years
24% 24%
13% 12%
45 - 64 years 30,001 576,452
29% 30%
65+ years
63,304 1,406,291
P R I M E R E TA I L PA R K I N V E S T M E N T O P P O R T U N I T Y
C I T Y E A S T R E TA I L PA R K
The Property
CityEast Retail Park was constructed in 2006 and
comprises 7 retail warehouse units extending to
16,607.8 sq m (178,764 sq ft) GIA.
The scheme is laid out in two detached blocks, the anchor unit occupied by B&Q
is a large rectangular shaped building with the other remaining units laid out in
an “L” shaped configuration. The retail park sits on a site area of approximately
6.64hectares (16.41 acres) and provides for 525 surface car parking spaces which is
free for customers.
Units range in size from approximately
704.00 sq m (7,578 sq ft) to 5,546.2 sq m (59,699 sq ft).
The units are of steel portal frame construction with block work walls and cast in-situ
concrete floors with coated metal deck roofs. The current use within the park is
restricted to bulky goods.
P R I M E R E TA I L PA R K I N V E S T M E N T O P P O R T U N I T Y
Tenancy Overview Top 3 tenants by income
CityEast Retail Park is let to seven tenants including B&Q,
Harvey Norman, Halfords, Home Store + More and EZ Living. Home
OTHER Store + More
Covenant Strength by Income
TENANTS 21%
€473,525 B&Q
26%
Over 75% of the current income is secured against €590,000
multinational covenants.
€2.3m
75% 25%
Rent Harvey
Receivable
Norman
28%
€638,520
Multinational National
€1,727,964 €574,795
Income Profile to Expiry Income Profile to Break
€1,600,000 €1,600,000
€1,399,669 €1,411,610
€1,400,000 €1,400,000
€1,200,000 €1,200,000
€1,000,000 €1,000,000
€773,090 €761,149
€800,000 €800,000
€600,000 €600,000
€400,000 €400,000
€130,000 €130,000
€200,000 €200,000
€0 €0
€0 €0
0 years - 2 years 2 years to 5 5 years to 10 10 years + 0 years - 2 years 2 years to 5 5 years to 10 10 years +
years years years years
Floor Area Floor Area
Unit Trading As Demise Lease Term Start End
Sq m Sq ft
Ground 5,378.5 57,894
1 B&Q 20 yrs & 1 day 25/07/2005 25/07/2025
Mezzanine 167.7 1,805
Ground 833.0 8,966
2 EZ Living 10 yrs 17/06/2013 16/06/2023
Mezzanine 549.6 5,916
Ground 669.2 7,203
3 Halfords 20 yrs & 1 day 28/10/2005 28/10/2025
Mezzanine 438.4 4,719
Ground 680.1 7,321
4 Maxi Zoo 25 yrs & 1 day 24/03/2008 24/03/2033
Mezzanine 23.9 257
Ground 4,256.4 45,815
5,6,7 Harvey Norman 25 yrs & 1 day 09/01/2006 09/01/2031
Mezzanine 78.5 845
Ground 1,891.5 20,360
8,9 Home Store + More 25 yrs & 1 day 07/08/2007 07/07/2032
Mezzanine 694.3 7,473
10 Home Savers Ground 946.7 10,190 20 yrs 17/05/2018 16/05/2038
Total 16,607.8 178,764
The above areas which are calculated on a Gross Internal Area basis were provided by Murphy Surveys.
An assignable measurement survey and detailed tenancy schedule is provided in the dataroom.
C I T Y E A S T R E TA I L PA R KSite Plan
BALLYSIMON RD
SERVICE RD
DEVELOPMENT LAND
UNIT 1A
GARDEN
CENTRE
NEW
LINEAR
PARK
UNIT
10A
PJ THWAITES
FUTURE OPPORTUNITIES
SERVICE RD For illustration purposes only
OLD TIPPERARY RD (N24)
Future Development
Unit 1A- Planning granted under ref (13/631) for an additional unit extending to approximately 1,427 sq m (15,360 sq ft).
Unit 10A- Planning granted under ref (17/733) for a coffee pod extending to approximately 244 sq m (2,626 sq ft).
Rent Review Break Contracted Rent Rent Receivable Comment
Abated rent from €1,208,592 per annum to minimum rent of €590,000 per annum
plus 5% of Gross T/O in excess of annual Rental Threshold of €11.8m from 1st April
25/07/2020 €590,000 €590,000
2013 to 24th July 2020. The next rent review on 25th July 2020 will be the higher of
€590,000 per annum or the open market yearly rent.
17/06/2018 16/06/2020 €130,000 €130,000
28/10/2020 €183,090 €183,090
24/03/2018 €186,354 €186,354
10/01/2021 09/01/2026 €638,520 €638,520 Break Option clause subject to 12 months notice and 12 months penalty.
07/08/2017 €473,525 €473,525
Rent Deposit Deed- €93,421.58 to act as security and for the future performance of
the Tenant. 1/3 will be refunded to the Tenant 21 days after the last day of the second
17/05/2023 €101,270 €101,270
year of the term, 1/3 after the last day of the third year of the term and 1/3 after the last
day of the fourth year of the term.
€2,302,759 €2,302,759
P R I M E R E TA I L PA R K I N V E S T M E N T O P P O R T U N I T YWhy Invest in Irish Retail
Economy going from Strength to Strength
Ireland was the EU’s fastest growing economy in 2018, with output rising by 8.2%. Total employment rose by 2.3% in 2018 and a
further 3.7% year-on-year in Q1 2019, with an increase of over 80,000 people at work. Unemployment is currently at 4.6%, close
to what is believed to be full employment. Greater numbers at work, coupled with increased earnings and consecutive tax cuts,
have led to strong growth of over 5% in real aggregate household disposable incomes in the last twelve months and continued
deleveraging which has contributed to a 4.6% rise in households’ net worth.
Figure 1: Household Net Worth By Component Figure 2: A
nnual Retail Sales & Price Growth by
Sector (3-mth Mov. Avg. June 2019)
1,000 24
Electrical
20
750
16
500
€ bn
12
250 Furniture
Pharmacy 8
0 Price Hardware
Growth, %
Newsagents
Specialist Foods 4
-250 Grocery
Clothing
2003 Q2
2003 Q4
2004 Q2
2004 Q4
2005 Q2
2005 Q4
2006 Q2
2006 Q4
2007 Q2
2007 Q4
2008 Q2
2008 Q4
2009 Q2
2009 Q4
2010 Q2
2010 Q4
2011 Q2
2011 Q4
2012 Q4
2012 Q4
2013 Q2
2013 Q4
2014 Q2
2014 Q4
2015 Q2
2015 Q4
2016 Q2
2016 Q4
2017 Q2
2017 Q4
2018 Q2
2018 Q4
Dept. Stores
0
-12 -8 -4 0 4 8 12
Financial Assets Liabilities Housing Assets Net Worth -4
Motors
Source: Central Bank of Ireland Bars
-8
Source: CSO, Savills Research Sales Volume, %
Retail Economy
The Q1 national accounts show a 2.9% increase in personal 23.2% Y/Y in Q1 2019 – as well as improved disposable
consumption expenditure – still positive but something of a incomes and rising house prices – the latter of which has
slowdown compared with the growth rates seen in late 2017 likely encouraged people to invest more in their homes.
and the first half of 2018.
Only newsagents, bars and car dealerships sit to the right of
The narrower monthly retail sales measure is also showing the vertical axis in Figure 2, indicating rising average prices.
growth, but has slowed significantly in the last few months. In all other sectors prices are falling. Indeed, deflation has
As of June the index was rising by just 0.1% Y/Y, compared been a consistent theme in Irish retail for a few years now.
with 6.4% a year ago. One reason is an ongoing compositional shift in the Irish
retail landscape towards mid-market and value brands. It also
All but the bars and motors sectors captured in the monthly
reflects lower input costs for retailers due to a weaker Pound
data are enjoying annual sales growth in volume terms (dots
since the Brexit referendum, with a share of these savings
above the horizontal axis in Figure 2). Some of the strongest
being passed on to consumers. However, the continuing
growth is being recorded in electrical (+22.7% 3mma) and
disparity between volume and value sales also suggests that
furniture stores (+10.0% 3mma). These store types are
e-commerce is improving price transparency, forcing face-to-
commonly associated with housing and their performance
face stores to be more competitive.
would appear to reflect the ramping-up of new housing supply
– new dwellings completions rose by 25.2% in 2018 by
C I T Y E A S T R E TA I L PA R KConsumer Economy Dashboard
Indicator Period % Change Y/Y
Live Register July 2019 -12.0
Overseas Trips to Ireland Q1 2019 +5.5
Real VAT Receipts June 2019 +3.7
Real Household Disposable Income (4QMA) Q1 2019 +5.2
Household Net Worth Q4 2018 +4.6
Total Retail Sales May 2019 +1.0
Total Employment Q1 2019 +3.7
Real Personal Consumption Expenditure Q1 2019 +2.9
Real Average Gross Earnings Q1 2019 +2.3
Consumer Credit Outstanding Balances May 2019 +4.7
Consumer Sentiment (3mma) June 2019 -14.2
Sources: CSO, CBI, KBC Bank Ireland/ESRI, Dept. of Finance.
Retail Property
Over the 12m to end-June, retail rents rose by 1.5% across the basket of investment grade shops covered by MSCI. This reflects
a slowdown compared with 3% Y/Y a 12m ago. As ever with retail there is significant variation by location and store type. Given
buoyant consumer demand for electrical goods and homewares, arising from increased household wealth and housing output,
the retail warehousing sector has been the best performer. Here rents are rising by 6.5% per annum and capital values have
edged up by 1.8%.
Figure 3: Overall Rents Forecast Q2 2018 - Q1 2021
300
250
Index: Q1 1996 = 100
200
150
100
50
1996 Q1
1996 Q3
1997 Q1
1997 Q3
1998 Q1
1998 Q3
1999 Q1
1999 Q3
2000 Q1
2000 Q3
2001 Q1
2001 Q3
2002 Q1
2002 Q3
2003 Q1
2003 Q3
2004 Q1
2004 Q3
2005 Q1
2005 Q3
2006 Q1
2006 Q3
2007 Q1
2007 Q3
2008 Q1
2008 Q3
2009 Q1
2009 Q3
2010 Q1
2010 Q3
2011 Q1
2011 Q3
2012 Q1
2012 Q3
2013 Q1
2013 Q3
2014 Q1
2014 Q3
2015 Q1
2015 Q3
2016 Q1
2016 Q3
2017 Q1
2017 Q3
2018 Q1
2018 Q3(f)
2019 Q1(f)
2019 Q3(f)
2020 Q1(f)
2020 Q3(f)
2021 Q1(f)
Outlook Central Forecast 95% Lower 95% Higher
The economic backdrop remains favourable for retail property. Ireland’s benign cycle of jobs creation, which has been in
place for more than five years now, is expected to continue with consensus forecasts pointing to robust growth of 2.2% and
1.9% in 2019 and 2020 respectively. Additionally, as the labour market approaches full-employment, wage inflation is likely to
strengthen, which should provide consumers with additional firing power at the tills.
In conjunction with the ESRI Savills Research has developed an econometric model of retail rents in Ireland. In summary, with
limited additional rental property being constructed rents are now rising with 1.51% Y/Y rental growth Q2 2019. The model
forecasts further rental growth of 3.44% between Q3 2019 to Q1 2021.
P R I M E R E TA I L PA R K I N V E S T M E N T O P P O R T U N I T YViewings VAT
All viewings are strictly by appointment We understand transfer of business relief
through the sole selling agent. should apply to the sale.
Pricing Title
Guide Price excess €24,250,000 We understand that the property
(subject to contract), which represents a is held Freehold.
net income yield of 8.75% after standard
purchaser’s costs of 8.46%.
Data Site
BER Rating www.cityeastretailpark.com
Contact
Selling Agents Solicitor
Savills Beauchmaps
33 Molesworth St Riverside Two
Dublin 2 Sir John Rogerson’s Quay
PSRA 002233 Dublin 2
Brendan Delaney Maitiú Ó Dónaill
+353 (0) 1 618 1715 +353 (0) 1 418 0657
brendan.delaney@savills.ie m.o’donaill@beauchamps.ie
John Earley
+353 (0) 1 618 1766
john.earley@savills.ie
Peter O’Meara
+353 (0) 21 490 6114
peter.omeara@savills.ie
DISCLAIMER: These particulars are issued by Savills Ireland on the understanding that any negotiations relating to the property
are conducted through them. While every care has been taken in preparing them, by Savills Ireland for themselves and for
the vendor/lessor whose agents they are, give notice that: - (i) The particulars are set out as a general outline for guiding
potential purchasers/tenants and do not constitute any part of an offer or contract. (ii) Any representation including descriptions,
dimensions, references to condition, permissions or licenses for uses or occupation, access and any other details are given
in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or
representations of fact but must satisfy themselves (at their own expense) as to their correctness. (iii) Neither by Savills Ireland,
nor any of their employees have any authority to make any or give any representation or warranty in relation to the property.
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