Lucan shopping centre sold off for amount in excess of €40m

By Brrendan Grehan

LUCAN SHOPPING CENTRE is believed to have been sold for in excess of €40 million.

The 12,008 sq m centre has SuperValu as an anchor tenant and also has Dunnes Stores, McDonalds and Starbuck as tenants.

The centre was sold by Savills as part of the SV4 collection which included SuperValu Ranelagh, SuperValu Rathgar and the Kilbarry Shopping Centre, Kilbarry, County Waterford.

The four properties were also offered for sale individually and now it is believed all but the shopping centre in Kilbarry have been snapped up for close to €70 million by a foreign investment fund.

The four supermarkets originally formed part of a loan portfolio known as Project Aspen sold by Nama in 2013 for less than the €200 million asking price on behalf of investors David Courtney, Gerry O’Reilly and Terence Sweeney.

Starwood Capital, along with two other investment groups Key Capital Real Estate and Catalyst Capital then acquired the four properties.

With the guide price of more than €40 million there would be an initial yield of 6.45 per cent.

The centre dates from 1991 and has an floor area of 12,008 sq m (129,252 sq ft).

Trading alongside SuperValu is Dunnes Stores, which holds a long leasehold on its premises at a nominal rent.

The annual passing rent is €2,695,934 per annum. SuperValu accounts for 59pc of the overall rent and the scheme has a weighted average unexpired lease of 11.8 years.

Other tenants within the scheme include McDonalds. Starbucks. Lloyd’s Pharmacy and O’Briens Fine Wines. Footfall is in the region of 65,000 people per week and there are 800 customer parking spaces.

Savills made no comment to The Echo and stated that the matter was “confidential”.