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CO TIPPERARY, IRELAND ROSCREA FOR SALE BY PRIVATE TREATY SUPERMARKET INVESTMENT OPPORTUNITY (TENANT NOT AFFECTED) C2
C O T I P P E R A R Y , I R E L A N D
R O S C R E A
FOR SALE BY PRIVATE TREATY
SUPERMARKET INVESTMENT OPPORTUNITY
(TENANT NOT AFFECTED)
C2
INVESTMENT HIGHLIGHTS
High profile
TOWN CENTRE
location
6.5
YEARS secure income
ANNUAL RENT OF €950,000
Purpose built supermarket 35 year FRI lease
from July 2011 to
TESCO IRELAND
ATTRACTIVE NIY
9.82%
significant CPI uplift in 2021
sq. m4,333(46,640 sq ft)224 car parking spaces
Roscrea is a busy market town located in Tipperary, the south midlands of Ireland. It is located approximately 44 miles (71km) north east of Limerick City on the N7, which links to the M7 motorway linking Dublin and Limerick. The M7 connects to the M8 motorway approximately 22 km east of the Town. The M8 links Dublin and Cork.
The town has a population of just under 5,500 (CSO 2016) but the fact that it sits on a confluence of eight major and minor routes makes it an important trading base for the wider hinterland population. The main employment in Roscrea is in meat production and pharmaceuticals. Many multinational companies have chosen Tipperary as their home, such as Bulmers, Boston Scientific, Abbott and MSD.
The property is located in the heart of the town beside Roscrea Shopping
Centre. It benefits from excellent pedestrian access to the surrounding commercial streets as well as being easily accessible for vehicles.
It was announced recently that a new REACH centre (Roscrea Enterprise and Community Hub) will be situated next to Tesco Roscrea. It is estimated that 192 jobs will be created over the space of 3 years with an annual economic benefit to the region of €8 million.
Tipperary also benefits with high quality connectivity via the national road network. In 2020 it is planned that €6.2 million will be put into maintaining and upgrading the Tipperary road network, this includes the N62 that runs directly through Roscrea. Roscrea has also benefited hugely in the past two years from very significant funding under the National Structural Programme.
LOCATION
RO
SCR
EA
High return in low interest rate environment
Exposure to grocery market which provides defensive investor qualities
Irish grocery sales eclipsed €1 billion in December 2019
Modern building in town centre
Single tenant
No management issues
REASONS TO BUY
TESCO
ROSCREA TOWN CENTRE
MAIN STREET
DUNNES STORES
TOWN CENTRE CAR PARK
SUPERVALU
CASTLE STREET
CO TIPPERARY, IRELAND
R O S C R E A
ROSCREA CASTLE
THE PROPERTY
PROMINENT COMPANIES IN ROSCREA
The property, constructed in 2011, comprises a modern detached retail building with supermarket at ground floor level and car parking at lower ground floor.
The property extends to approximately 4,333 sq. m (46,640 sq. ft) together with 224 car spaces. The building is of streel frame construction with a metal deck roof and a mix of metal cladding and glazing to the façade. The lower ground floor car park is accessed via a ramp from a roundabout on Lourdes Road to the rear of the property.
The property comprises the ground floor supermarket with ancillary stores and customer toilets with first floor ancillary area comprising staff canteen, lockers, toilets and showers, offices and a comms room.
There are two customer lifts and two travellators providing access to the supermarket from the lower ground floor car park.
COUNTY TIPPERARY
ATHLONE
CORK
DUBLIN
LIMERICK
SHANNONAIRPORT
WATERFORD
M50M6
M4
M1
M3
M11M7M18
M7
M8
M9
ROSCREA
GALWAY
A measurement carried out on behalf of both the landlord and the tenant at the commencement of the lease records the floor area as follows:
SCHEDULE OF ACCOMMODATION
All intending purchasers should satisfy themselves in relation to Floor Areas.
Floor Description Floor Area (sq m) Floor Area (Sq ft)
Ground Floor Supermarket 4,333 46,640
Lower Ground Floor Car Parking 224 Car Spaces
TENANT COVENANTTENANCYTesco Ireland is a wholly owned subsidiary
of Tesco Ireland Holdings Limited with the ultimate parent company being Tesco PLC. The accounts for Tesco Ireland are prepared on a consolidated basis in the accounts of Tesco plc.
Tesco plc reported Group Sales of £56.9 billion year ending 23 February 2019, up 11.5% from the previous financial year.
Group operating profit was £2.2m billion for financial year ending February 2019, up 34% on the previous year.
Tesco Ireland Limited is the company which holds all of the leases in the Tesco portfolio in Ireland. Tesco is a leading supermarket retailer in Ireland with a 22% share of the grocery market. Tesco has 151 stores in Ireland and employs approximately 13,000 people.
The property is let to Tesco Ireland on a 35 year FRI lease from 1 July 2011 with break options after years 15, 20, 25 and 30. The annual passing rent is €950,000 per annum and the lease provides for the rent to be adjusted in line with the compounded annual proportionate change in the Consumer Price Index after year 10 and 5 yearly thereafter. The CPI uplifts are subject to an annual cap of 4% and a collar of -1%. Therefore in 2021 a 10 year compounded annual CPI uplift will accrue to the landlord.
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Consumer Price Index (Base December 2006=100)
CPIAt present the CPI increase between the lease start date and December 2019 stood at 4.1%. This would imply a current rent increase to €989,317. See graph below.
Source: CSO.ie
RETAIL GROCERY MARKETGrocery sales grew by almost 60% from mid-1998 to the pre-crash peak. However, these sales only fell 9% post-crash and have now recovered by over 36% from the bottom of the market to stand 24% above the previous peak.
By contrast, overall sales (excluding motor) increased by a little more at 62% but fell by almost 16% from the pre-crash peak, one and two-thirds the fall for the grocery trade. While these sales have recovered by 37% from the bottom of the market, they are just over 16% above the previous peak, about two-thirds that of grocery sales.
Furthermore, the latest research from Kantar
report that the Irish grocery market hit a new milestone over the Christmas period, as December sales eclipsed €1 billion for the first time on record.
The attraction of the grocery business as an investment opportunity is reflected in the establishment of the UK Supermarket REIT, ‘SUPR’. This was listed in July 2017 and confidence has grown in the REIT.
SUPR completed an oversubscribed equity placing at 102p that raised £100m. This was launched in September 2019 with the expectation of raising approximately £50m but demand was such that this target was subsequently doubled.
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Grocery Trade All Retail exc. Motor
Retail Grocery Market performance in the last 20 years Source: CSO.ie
FOR SALE BY PRIVATE TREATY
SUPERMARKET INVESTMENT OPPORTUNITY
(TENANT NOT AFFECTED)
TWM for themselves and for the vendor/lessor of the property whose agents they are, give notice that: 1. These particulars do not constitute an offer or contract or any part thereof and none of the statements contained in the particulars as to the property are to be relied on as a statement or representation of fact. 2. The vendor does not make or give, nor is the Agent(s) or its staff authorised to make or give any representation or warranty in respect to this property. 3. All descriptions, dimensions, references to condition and necessary permission for use and occupation, and other details are given in good faith and are believed to be correct, but any intending purchaser or tenant should not rely on them as statements or representations of fact but must satisfy himself/herself by inspection or otherwise as to the correctness of each of them. 4. In the event of any inconsistency between these particulars and the contract of sale, the latter shall prevail. 5. VAT may be payable on the purchase price.
Proposal Offers are invited at €8.8m which reflects a net initial yield of 9.82% and a reversionary yield of 10.2% (assuming standard purchaser costs of 9.96% and CPI increase of 4.1%)
TenureWe understand that the property is held by way of Freehold and 999 year leasehold title.
BER
ViewingStrictly by appointment with the sole agent
SolicitorsA & L Goodbody, IFSC, North Wall Quay, Dublin 1, T: + 353 (0) 649 2000
SELLING AGENT Sean O’NeillT: + 353 (0) 1 678 5901M: [email protected]
Patricia WardT: + 353 (0) 1 611 0324M: [email protected]
Mark KellyT: + 353 (0) 1 611 0328M: [email protected]
PSRA No: 001835
4/5 Dawson Street, D02 FH72, Dublin 2
www.twmproperty.ie
CO TIPPERARY, IRELAND
R O S C R E A
C2
