9th Jun 2015 07:54
LONDON (Alliance News) - Development Securities PLC Tuesday said it has bought two retail assets in Dublin in a 50:50 joint venture with Clarendon Properties, the investment vehicle owned by Irish property tycoons Tony Leonard and Patrick McKillen.
The property investor said the joint venture has paid EUR12.8 million in total for the Nutgrove Retail Centre and the Beacon South Quarter in south Dublin, representing a net initial yield of 6.72%.
"This is the latest in a number of acquisitions that we have made in Dublin, an important market for us in which we see further opportunities for development, trading and investment activity. Both of the investment assets acquired today are well-located, established retail destinations that offer the potential to enhance value through proactive asset management," said Development Securities Executive Director Matthew Weiner.
"We are pleased to be in joint venture with experienced partners and together we look forward to improving the quality and experience of these retail locations," he added.
Nutgrove Retail Centre is a retail warehouse scheme comprising 45,000 square feet of accommodation, with key tenants including Petworld and Home Store & More. The current occupancy rate stands at 80.7% "with the opportunity to add value by letting the remaining vacant unit within the centre", the company said. The weighted unexpired lease term is 7.5 years.
Beacon South Quarter is a mixed-use development comprising retail, restaurant, residential and office space located in one of south Dublin's most affluent residential and commercial suburbs. The joint venture partners have acquired the long leasehold in respect of eight self-contained retail units within the wider scheme, which are let to a number of national and local occupiers including BoConcept, Your Local Pharmacy and Roche Bobois. The occupancy rate across the eight units is 86% "and there are a number of asset management opportunities to improve the retail offer and tenant mix".
Development Securities shares were up 1.5% at 274.98 pence early Tuesday.
By Steve McGrath; [email protected]; @stevemcgrath1
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