Unit at City Square Shopping Centre, Waterford for €2.1m

Savills are offering a retail investment for sale at Unit 24 (River Island) City Square, Waterford. The property is being offered for sale on behalf of a Receiver, Ken Fennel of Deloitte & Touche.

The property, occupied by River Island, is a two storey over basement double fronted retail unit which extends to approximately 812.62 sq.m. (8,747 sq.ft) and benefits from good profile and frontage to Arundel Square.

The space is split with women’s fashion on the ground floor and men’s fashion on the first floor; both floors having their own fitting rooms. Additional to this the shop benefits from extensive storage located to the rear, a passenger lift and a staff canteen area.

River Island occupies an amalgamation of two separate units one of which our client has been appointed Receiver. This portion of the unit (747.22sq.m) was let to IBI Properties who own the other portion of the River Island unit.

Once this lease was put in place River Island were granted an occupational lease by IBI Properties of the entire unit. River Island sublease commenced on the 28th April 2008 and ends on the 2nd December 2027; the current rent is set at €360,000 p.a. and it benefits from upward only rent reviews. River Island has an option to break subject to 6 months’ notice on the fourth, sixth, eighth and tenth year.

The interest which is for sale benefits from a 22 year lease to IBI Properties with no breaks which commenced on the 5th December 2005. The current rent is €245,000 per annum and avails of an upward only rent review. IBI properties are now known as State Street Global Advisors and are the asset management business of State Street Corporation, one of the world’s leading providers of financial services to institutional investors. As such the covenant would be considered very strong.

City Square Shopping Centre is located in Waterford City Centre, Ireland’s fifth largest city. Waterford City is located 170km south of Dublin and would be considered the main city of Ireland’s South-East Region. The population of Waterford County alone extends to approximately 115,000. Waterford City also serves neighbouring counties Wexford, Kilkenny, Tipperary, Kilkenny and Cork. The centre is easily accessible by rail, car and bus, with secure parking for over 500 cars at basement level.

The property benefits from its situation at the entrance of the busy north-west side of the shopping centre. The centre comprises over 18,000 square metres of retail accommodation. The scheme is anchored by Dunnes and Debenhams and has a variety of national and international retailers such as JD Sports, Wallis, Burger King, Specsavers and Peter Mark.

There is currently strong demand for investment property of this type and purchasers can benefit from Capital Gains Tax Relief if they purchase the property before 31st December 2014 and hold the property for seven years.

Savills are selling the property by way of private treaty with a guide price of €2.1million exclusive.

Savills are selling the property by way of a private treaty sale which is being handled by Steven Denehan and Isobel O’Regan.