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Irish Times
3 days ago
- Business
- Irish Times
US investor set to pay €120m for three of Ireland's leading retail parks
Having paid €220 million in March for the Oaktree portfolio, a collection of eight of Ireland's best-known retail parks, Realty Income Reit is set to deepen its involvement in the Irish market with the purchase of three additional schemes. While the transaction has yet to be completed, The Irish Times understands that the US investment giant is poised to move in the coming days from being preferred bidder into exclusivity in relation to the acquisition of the Trinity Collection, a portfolio comprising Belgard Retail Park in Tallaght, Dublin 24, the M1 Retail Park in Drogheda, Co Louth, and Poppyfield Retail Park in Clonmel, Co Tipperary. The proposed purchase price is said to be in line with the €120 million guided by agent Cushman & Wakefield when it offered the portfolio to the market formally in April. Should the sale complete at the agreed level, the Trinity Collection's owners would be in line for a significant return on their original investment. Developer Pat Crean's Marlet Property Group and its funding partner M&G paid €78 million to secure ownership of the schemes from US investor Marathon Asset Management in September 2021. Since acquiring the portfolio, Marlet has engaged in an intensive asset management programme at all three locations. All three schemes have benefited from ESG initiatives and had work undertaken to improve their overall aesthetics and presentation. The overall rent roll, meanwhile, has been increased from €7 million to more than €9 million. READ MORE Belgard Retail Park has long been regarded as one of the foremost retail parks in the capital. Outside of its more recent addition of its new EZ Living unit, the scheme is occupied by a range of leading retailers including B&Q, Home Store & More, Dealz, Carpet Right, Halfords, Right Style Furniture, Burger King and Starbucks. The total current rent is about €3.45 million per annum, or some €320,000 more than the €3.13 million it had been generating in 2021. The M1 Retail Park comprises a mix of retail, office and leisure accommodation extending to a total of 24,805sq m (267,000sq ft), along with 600 car-parking spaces. The addition of the new Tesco supermarket will increase the scheme's overall footprint to 28,986sq m (312,000sq ft). The park is already anchored by Woodie's DIY and its other tenants include Smyths Toys, Sports Direct/Brand Max, Dealz, Equipet and EZ Living. The total current rent is now €4 million per annum, an increase of €1.56 million on the €2.44 million it had been generating in 2021. The M1 scheme also includes Mellview House, a four-storey building comprising office space, a gym operated by Gym Plus and a number of other smaller retail units. Another building known as the Pavilion is home to Costa Coffee, TC Matthews and Lanu Medi Spa. M1 Retail Park also includes lands extending to 11 hectares (27 acres) and comprises three adjoining plots with proposed zoning under the Draft Louth County Development Plan 2021-2027 for three uses, namely A2 New Residential, C1 Mixed Use and B4 District Centre. Poppyfield Retail Park extends to 12,821sq m (138,000sq ft) and comprises a mix of 14 retail warehousing units, a neighbourhood centre and 393 car-parking spaces. The park is 99 per cent occupied and anchored by Woodie's DIY and SuperValu. Other tenants include Harry Corry, Maxi Zoo, EZ Living, World of Wonder and DID Electrical. The neighbourhood centre is occupied by Costa Coffee and Sam McCauley, along with a hair and beauty studio and fish-and-chips operator. The total current rental income is €1.6 million per annum, an increase of €170,000 on the €1.43 million it had been generating in 2021. The Trinity Collection will be Realty Income Reit's third investment in Ireland to date. The US investor made its first acquisition here in 2023, when it paid Eden Capital €45.9 million for CityEast Retail Park in Limerick and Blackwater Retail Park in Navan, Co Meath. Its second and most valuable acquisition (the Oaktree portfolio) took place earlier this year, and saw it secure ownership of an eight-strong portfolio of retail parks comprising Navan Retail Park; Bray Retail Park; Sligo Retail Park; Waterford Retail Park; Naas Retail Park; Drogheda Retail Park, Gateway Retail Park in Galway, and Parkway Retail Park in Limerick. Oaktree had acquired the retail parks through its subsidiary, Targeted Investment Opportunities (TIO), in a series of transactions between 2015 and 2017.
Irish Examiner
28-04-2025
- Business
- Irish Examiner
Investment property spend triples to €548m during opening months of 2025
The value of investment property transactions during the first quarter of the year rose to €548m, three times higher than the same period in 2024, on the back of a large transaction involving the sale of a portfolio of retail parks, a report by estate agent Sherry FitzGerald shows. The report shows there were 27 transactions completed during this period, the largest of which was the sale of Oaktree Capital Management's portfolio of eight retail parks — located in Bray, Drogheda, Galway, Limerick, Naas, Navan, Sligo, and Waterford — for €220m to US investor Realty Income Reit. During the same quarter in 2024, there were 20 deals completed — valued at a combined €163m. However, when compared to the long-term average for the first quarter of the year, both the value and volume of transactions were both down by 20% and 26% respectively. During the early part of 2024, the European Central Bank still had very high interest rates — which made borrowing money, potentially for investment, very expensive. Rates have been steadily declining since June of last year and, as of the start of the year, were significantly lower. Retail was the main driver of investment activity during the period January to March, accounting for half of turnover in the market. In total, €272m was invested in retail space. Aside from Oaktree Capital Management's retail park portfolio sale, other retail assets that transacted during the quarter included three receivership assets that were bought back by Johnny Ronan's property company RGRE. All three properties were located on Grafton St, Dublin — including 78-79 Grafton St, the flagship premises of Bewleys Café; 70 Grafton St, which is let to PTSB and City Break Apartments; and 116 Grafton St, which is leased to cosmetics company Lush. Total investor spend on office, industrial, and residential assets remained below the long-term quarterly averages. Industrial and logistics Office space accounted for €87m of total investor spending. The largest transaction in this sector involved the sale of Central Quay — a six-storey, over-basement modern office building at South Docks — by Hibernia Real Estate Group to French investor Atland Voisin for approximately €42m. Hotel asset investment accounted for €86m of the overall spend while healthcare investments stood at €43m. Industrial and logistics transactions totalled just over €41m during the first three months of the year, while residential assets saw the lowest quarterly level of investment activity since the second quarter of 2017 — reaching just €11m. Overseas investors accounted for 78% of total investment spend during the quarter. Approximately 47% of turnover during the period was located in Dublin. Cork absorbed a further 6% of capital spend in three transactions, while Galway, Limerick, and Meath each saw one transaction during the period. In the report's outlook for the rest of the year, it said that the current international trade tensions and uncertainty across the global economy is likely to 'have some impact on the investment market in the short- to medium-term'. 'That said, given the current underlying strength of the domestic economy with robust employment, unemployment close to full employment, low inflation and strong consumer spending, investors in a position to move may take advantage of favourably priced assets,' the report said. Read More Fota Island Resort owner posts €1.2m loss despite turnover rise
