Charleville Shopping Centre Sale – €3.5m Price
- CHARLEVILLE Shopping Centre in North Cork, billed as a ample town centre investment opportunity, is on the market for €3.5m, a fraction of the €20m it cost to...
- The 45,000sq ft centre (4,197 sq m) is 80% occupied under various leases and generates an annual rental income of c €520,000.
- It's the third time the centre has come to market as it opened in 2008, but its fortunes have improved considerably since it last changed hands in 2018.
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Charleville Shopping Centre, Cork: Investment Opportunity
Table of Contents
Overview
CHARLEVILLE Shopping Centre in North Cork, billed as a ample town centre investment opportunity, is on the market for €3.5m, a fraction of the €20m it cost to build it.
The 45,000sq ft centre (4,197 sq m) is 80% occupied under various leases and generates an annual rental income of c €520,000.
History and Previous Sales
It’s the third time the centre has come to market as it opened in 2008, but its fortunes have improved considerably since it last changed hands in 2018. Back then, 15 of its 17 retail units had never traded, representing an occupancy rate of less than 12%. Solas Financial bought it from receivers Deloitte in 2018, after it was brought to market for €1.9m.
While the centre had suffered from bad timing - it was completed just ahead of the 2008 crash - Solas Financial has improved occupancy rates. Now,all but three of 13 retail units are occupied and all but two of nine offices.
Financial Details and Potential
David McCarthy, divisional director of Sherry FitzGerald Commercial, said that new owners could potentially look forward to an annual rental income of €610,000, once the centre is fully tenanted.
“The property presents a unique opportunity to acquire a substantial mixed-use investment with extensive asset management opportunities and an estimated rental value in the region of €610,000 per annum upon full occupancy,” mr McCarthy said. The agent also said the €3.5m guide price “reflects a net initial yield of 12.2%, assuming standard acquisition costs”. The average lease length to expiry is 10.8 years and 2