Col­eraine shop units on mar­ket for £800k

Belfast Telegraph - Business Telegraph - - Commercial Porperty - BY MAR­GARET CAN­NING

TWO shop units in a thriv­ing Co Lon­don­derry town have gone on the mar­ket at around £0.8m.

And agents Sav­ills said they ex­pect that the Col­eraine prop­er­ties will be snapped up by a cash buyer.

Num­bers 3 to 5 Church Street in the town are let out to re­tail­ers JD Sports and The Ed­in­burgh Woollen Mill, gen­er­at­ing £87,000 in rent.

Neal Mor­ri­son, a di­rec­tor at sell­ing agents Sav­ills in Belfast, said the town was a suc­cess­ful re­tail des­ti­na­tion, and that in­ter­est in the Church Street units would be strong.

And he said both leases for the units had a few years to run, which cre­ated an at­trac­tive buy­ing prospect to a buyer.

“Both are very strong busi­nesses with a good covenant.”

And he said the units would not nec­es­sar­ily be more likely to be bought by those with ex­ist­ing in­vest­ment in­ter­ests in Col­eraine.

“There are peo­ple through­out the prov­ince who would be in­ter­ested in this. It re­ally is a strong covenant with a good lo­ca­tion and pitch in Col­eraine, with an at­trac­tive yield. “There is se­cu­rity of in­come.” The units are on sale by pri­vate treaty through OKT and Sav­ills.

The pro­posed sale comes as the monthly foot­fall sur­vey by the North­ern Ire­land Re­tail Con­sor­tium claimed that shop va­cancy rates in North­ern Ire­land were at a six year low.

How­ever, Aod­han Con­nolly, the di­rec­tor of the NIRC, said the 14% va­cancy rate was still among the high­est of the UK re­gions.

The lat­est foot­fall fig­ures show a drop of 0.2% in North­ern Ire­land in Jan­uary.

That fol­lowed two months of growth, ac­cord­ing to fig­ures from the NIRC and Spring­board.

The high street saw a rise in shop­per num­bers, up 2.5%, but to­tal foot­fall was pulled down by a 3% drop at shop­ping cen­tres. How­ever, over­all, the UK suf­fered a larger drop in shop­per num­bers on av­er­age, fall­ing by 1.3%.

Mr Con­nolly added: “The real good news story is the con­tin­ued fall in the shop va­cancy rate, which is now the low­est it has been since 2011.

“The drop to 14% means that we have now had three con­sec­u­tive quar­ters of fall in the va­cancy rate.”

Mean­while, the Ul­ster Bank pur­chas­ing man­agers’ in­dex (PMI) for Jan­uary also said re­tail ac­tiv­ity had gone up dur­ing Jan­uary.

But Ul­ster Bank chief economist Richard Ramsey said com­pa­nies were ex­pe­ri­enc­ing in­creas­ing costs as the fall­ing value of ster­ling drove up in­put prices.

He said man­u­fac­tur­ing firms ap­peared to be try­ing to ab­sorb some of the in­creased costs.

“Re­tail­ers on the other hand ap­pear to be pass­ing on their in­creased costs en­tirely to the con­sumer, and it will be in­ter­est­ing to see to what ex­tent this im­pacts on con­sumer spend­ing in the months ahead.”

And while re­tail open­ings en­joyed a strong 2016, the num­ber of in­vest­ment trans­ac­tion in com­mer­cial prop­erty fell.

Brexit con­trib­uted to a 40% slump in in­vest­ment com­mer­cial prop­erty deals in North­ern Ire­land from £400m to £248m, ac­cord­ing to agents CBRE’S overview of 2016.

Col­eraine town cen­tre is a suc­cess­ful re­tail des­ti­na­tion, and in­ter­est in the shop units is ex­pected to be strong

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