Market Improvement Continues With Sale of Largest Building in Ireland
The property which extends to a gross floor area of over 833,000 sq.ft on a site of 40 acres, was developed in 2007 by Tesco and immediately sold as a sale and leaseback to a consortium assembled by KPMG Dublin. During the intervening 7 years the rent has increased annually in line with the annual CPI and this annual increase will continue for the remaining 18 years of the 25 year lease.
The property which currently produces an annual rent in excess of €8.1m has sold as a corporate transaction at an approximate 6.5% yield or €124m to a Johannesburg property fund. Commenting on the sale, Robert Murphy of Murphy Mulhall, noted “ This is a unique asset within the Irish property market; firstly it is the largest building constructed in Ireland; secondly it is let to a world class covenant for an unexpired term of 18 years and; thirdly the logistics market in Ireland at the larger end is relatively underdeveloped thus further reinforcing the capital growth prospects of the property given its modern specification, location to national motorway network and Dublin Airport.” Bank of Ireland Corporate Banking provided staple finance for the transaction.