French fund seeks €19.7m for fully-let trio of investments in Dublin and Galway – The Irish Times

Having paid about €17.5 million across separate transactions in 2019 to secure ownership of three mixed-use investment properties in Galway city centre, Churchtown, Dublin 14, and Smithfield, Dublin 7, French fund MNK Partners has instructed agent Colliers to find a buyer for the portfolio in one or more lots. The assets, which are fully let and generating annual rental income of approximately €1.34 million, are being offered to the market at a combined guide price of €19.7 million.

The details of the three-point portfolio are as follows:

33 Shop Street, Galway

Located on Galway’s main pedestrianised retail street, 33 Shop Street comprises a landmark three-storey retail building extending to 1,043sq m (11,226sq ft). The property is fully let to Eason Ireland and is producing a passing rent of €551,250 a year.

The investment offers a weighted average unexpired lease term (WAULT) of approximately 8.4 years to break and 18.4 years to expiry, with open-market rent reviews every five years. The property is guiding €7.5 million, reflecting a net initial yield of 6.68 per cent.

96/98 Churchtown Road, Dublin 14

Located on the site of the former Braemor Rooms and McGowan’s pub in Churchtown, this mixed-use investment extends to 1,139sq m (12,260sq ft) and is occupied by Centric Health, Glorious Flowers and a restaurant unit which is scheduled to open shortly. The property is generating €376,087 in annual rental income and has a WAULT of 9.8 years to break and 13.65 years to expiry. The income profile combines CPI-linked and open-market rent review provisions across the tenancy mix. The guide price is €6 million, reflecting a net initial yield of 5.7 per cent.

Block F, Smithfield Square, Dublin 7

Block F at Smithfield Square comprises 1,504sq m (16,191sq ft) of retail and office accommodation within the established Smithfield Market development. The property is fully let to Fresh and Brown Bag Films and is producing passing rental income of €417,243 a year. The investment benefits from a WAULT of 12.4 years and incorporates both CPI-linked and open market rent review provisions. The property is guiding €6.2 million, which equates to a net initial yield of 6.12 per cent.

Michele McGarry, who is handling the sale of the portfolio on behalf of Colliers, says: “This offering brings three well-located investment opportunities to the market across Galway and Dublin, underpinned by established occupiers and long-term income profiles. The assets provide exposure to a diverse range of sectors including retail, healthcare and office.

“The choice of acquiring the properties individually or as a portfolio should appeal to a broad range of domestic and international investors.”