Avoca premises are put on the market for €29m

AVOCA Rathcoole, one of the well-known retail outlet’s flagship stores, has been placed on the market by TWM Property, alongside the Kilmacanogue store in Wicklow, for a healthy asking price of €29m.

In 2017, Irish retail property investor Signature Capital acquired the two flagship premises for approximately €22m from the retailer’s US-headquartered owner Aramark, a blue chip Fortune 500 company.

Aramark acquired the Avoca business from the Pratt family in a €51 million deal in 2015.

Both properties are on long-term leases to Avoca Handweavers Shops Ltd, with 21 years left until expiry. The tenant is currently paying annual rent of €1.6m for both properties.

The Rathcoole store is located just off the N7 Naas Road, close to junction 4 of the M7/M50 interchange, and about 16km southwest of Dublin city centre.

The property, which was developed in 2007, comprises a three-storey building of 3,964sqm on a site of 1.6 hectares with frontage to both the N7 Naas Road and Fitzmaurice Road.

With extensive retail and ancillary space on the store’s ground floor, the premises also offers the Egg Cafe and Birdcage Café on the first floor, together with kitchen facilities and balcony seating areas.

The second floor comprises modern office accommodation accessed via a dedicated entrance and passenger lift, with a mix of occupiers including Avoca.

Every five years, rent reviews occur and are linked to the Consumer Price Index, subject to a 3.5 per cent annual cap and -0.5 per cent annual collar, compounded annually.

The next CPI rental uplift is due in September 2027, with the rent payable increasing to €2 million at that time. The vendor is providing a rental underwrite to ensure that the incoming owner will secure a yield of 6.2 per cent based on the asking price of €29 million.