€233m Square set to draw in buy­ers

Irish Examiner - - Business - Pádraig Hoare

In­ter­na­tional in­vestors may be en­ticed as buy­ers for The Square Tal­laght shop­ping cen­tre, which has gone up for sale for €233m.

Joint agents Cush­man & Wake­field and JLL are quot­ing in ex­cess of €233m for the con­trol­ling in­ter­est in the cen­tre, de­scribed as a “long-an­tic­i­pated sale”.

The 577,500 sq ft scheme orig­i­nally opened in 1990 and sits on a site of about 27 acres, state the agents.

An­chored by Tesco, Deben­hams, and Dunnes Stores, The Square sees 22m peo­ple per an­num com­ing through its doors, said the agents.

Cush­man & Wake­field and JLL said they ex­pect con­sid­er­able in­ter­est in the sale from both do­mes­tic and in­ter­na­tional in­vestors. The sale is on in­struc­tions of Nama.

The new own­ers will hold 118 of the 160 shop units in the cen­tre, in­clud­ing a 13-screen cinema. Ten­ants also in­clude River Is­land, H&M, New Look, Heaton’s, Boots, Ar­gos, Nando’s, Star­bucks, and IMC cinema. It has a size­able food of­fer­ing and over 2,400 car spa­ces.

The head of in­vest­ments at Cush­man & Wake­field, Kevin Dono­hue, and JLL chief ex­ec­u­tive John Mo­ran said in a state­ment: “The Square Tal­laght pro­vides in­vestors with an op­por­tu­nity to con­trol one of Dublin’s largest re­gional shop­ping cen­tres and of­fers the abil­ity to par­tic­i­pate in the Ir­ish re­tail mar­ket at a time when re­tail sales are on an up­ward tra­jec­tory and the Ir­ish econ­omy leads the way in the EU.

“The as­set of­fers in­vestors long-term se­cure in­come with im­me­di­ate abil­ity to drive this for­ward via ex­ist­ing de­vel­op­ment and as­set man­age­ment op­por­tu­ni­ties, which will fur­ther en­hance The Square as one of Ire­land’s top shop­ping destinations.”

The shop­ping cen­tre was the source of a court bat­tle ear­lier this year be­cause of added de­vel­op­ment be­ing given per­mis­sion to go ahead back in 2014.

Dunnes Stores had ob­jected to the pro­posed ad­di­tions to the north­ern and south­ern end, but the courts de­cided re­de­vel­op­ment could go ahead.

New buy­ers would be al­lowed a north­ern ex­ten­sion which in­cludes a new two-level depart­ment store with a let­table area of ap­prox­i­mately 65,000 sq ft, to­gether with eight re­tail units over ap­prox­i­mately 80,000 sq ft.

The south­ern ex­ten­sion pro­vides for a sin­gle-level unit with a let­table area of ap­prox­i­mately 60,000 sq ft.

The ex­ten­sions will see the ex­ist­ing car park­ing pro­vi­sion in­crease to over 2,800 spa­ces with the ad­di­tion of a six-level multi-storey car park.

The cen­tre gen­er­ates al­most €14m in rental in­come, while the new own­ers would have a re­turn of 5.75%.

The Square Tal­laght is up for sale for €233m. The 577,500 sq ft scheme was orig­i­nally opened in 1990 and sits on a site of ap­prox­i­mately 27 acres. The new own­ers will hold 118 of the 160 shop units in the cen­tre, in­clud­ing a 13-screen cinema.

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