High profile Iceland building put on market

By Maurice Garvey

A HIGH profile commercial site in Ballyfermot is on the market with the Iceland supermarket and overhead offices for sale by private treaty.

The property is being sold as an investment asset through agent Cushman and Wakefield.

Ciara Horgan of the selling agents is seeking offers in excess of €2.7million for the freehold supermarket and office complex, which will show a net initial yield of 7.24 per cent assuming standard purchasers’ costs of 4.46 per cent.

The yield is due to rise to a minimum of 8.19 per cent by the time of the next rent review in three years.

Iceland Stores Ireland occupy the property on a 25-year lease which expires in 2030.

Unusually, the rent £173,987 per annum (€203,450), is payable in sterling, and the lease provides for further upward only fixed increases in 2020 to £196,850 (€230,185) and £222,718 (€260,433) in 2025.

At that stage there is a tenant-only break option.

The business benefits from a full guarantee by the UK parent company for the duration of the Iceland lease.

The two-storey over ground level supermarket and office have an overall floor area of 792sq m (8,388sq ft).

A 999-year long leasehold interest has been created out of the freehold title on part of the first floor and the entire second floor and let at a peppercorn rent.

Iceland’s UK parent company took back control of its Irish operation from a franchisee, the AIM Group in 2013.
The supermarket is located in the busy Grange Cross commercial area of Ballyfermot.

There are 10 car parking spaces to the front of the premises.