Development Securities has completed the purchase of two retail investment assets, with joint venture partners Clarendon Properties, in a €12.8 million deal.
The latest additions to the Development Securities portfolio, Nutgrove Retail Centre and Beacon South Quarter, are located in suburban Dublin and offer a number of asset management opportunities as a means of increasing the value of the sites.
The deal represents a net initial yield of 6.72 per cent and is shared 50:50 between Development Securities and Clarendon Properties; an investment vehicle spearheaded by Tony Leonard and Patrick McKillen.
Nutgrove Retail Centre is located in Rathfarnham in South Dublin and comprises 45,000 sq ft of retail warehouse space. The current occupancy rate stands at 80.7 per cent, with the opportunity to add value to the site by letting the last vacant unit. Current occupiers include Petworld and Home Store & More and the weighted unexpired lease term is 7.5 years.
Beacon South Quarter, meanwhile, is a vibrant mixed use development in a highly affluent residential and commercial suburb. Although the complex combines retail, leisure and office space along with a number of residential units, the partnerships deal concerns eight self-contained retail units in the heart of the development.
The units at present boast an occupancy rate of 86 per cent, and are home to a mixture of local and national tenants including Roche Bobois, Your Local Pharmacy and BoConcept. However, the partnership has already identified a number of asset management strategies geared towards diversifying the tenant mix and improving the site’s retail offer.
Development Securities’ executive director Matthew Weiner believes the acquisitions will prove highly profitable in the future.
He says; “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.
“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.”
Tony Leonard, Managing Director at Clarendon Properties, added: “We are delighted to be teaming up with an experienced and active development partner.
“With our local retail and office expertise, we anticipate that this will lead to further joint venture transactions in Ireland.”
Previous Post
Bristol closes in on £30 per sq ft Club
