Blanchardstown centre Dublin 15 up for sale

handlemaster

http://www.independent.ie/business/irish/blanchardstown-shopping-centre-up-for-sale-annual-rent-roll-of-50m-34384902.html


The best retail centre in ireland is going up for sale
.
.Will be a good tester for the year ahead. Its in a great location with a huge catchment area the price will be high

emeldc

FANTASTIC. Might be time to re-mortgage the 2 bed in Portlaoise :P

handlemaster

emeldc wrote: »

FANTASTIC. Might be time to re-mortgage the 2 bed in Portlaoise :P

You might get to buy a decent watch in the Blanch jewellers with that ;-)

emeldc

handlemaster wrote: »

You might get to buy a decent watch in Aldi with that ;-)

Fixed :pac:

handlemaster

The Irish times have it down priced at 1 billion euros

gaius c

handlemaster wrote: »

The Irish times have it down priced at 1 billion euros

5% yield with current rent roll. Not that enticing but there's development potential where more outlets could be added.

The_Conductor

gaius c wrote: »

5% yield with current rent roll. Not that enticing but there's development potential where more outlets could be added.

Its definitely not all that enticing- at that price point. A 5% yield- when cost of funds is taken into the equation- is not worth the risk (and there is significant risk- events of the past 2-3 weeks are deeply worrying).

handlemaster

How much would the developments make if sold off on there own afterwards?

cython

gaius c wrote: »

5% yield with current rent roll. Not that enticing but there's development potential where more outlets could be added.

Living in the Dublin 15 area, I'd have to disagree with that. While there might technically be some space to build another unit or two (e.g. the site of the ice skating), the traffic routes into and out of the centre are beyond capacity at present, and the impact it has on the locality (even something as simple as access to the N3/M50) is mental. I'd be surprised at permission being granted for further development without significant changes to access routes, and scope for that is also limited.

The_Conductor

handlemaster wrote: »

How much would the developments make if sold off on there own afterwards?

Just reviewed the SCSI data- looks like prime Dublin retail is grossing around 6.5% on average- so 5% for Blanch- probably is the right ballpark. That said- residential is grossing up to 10-12% (for smaller units) and 6-7% for larger units. If hard not to come to the financial conclusion that any on-site development for the area- should be high density small apartments- akin to the smaller 1 beds approved by Dublin City Council. There is just no risk premium associated with further development of retail space in the Blanch centre- the money is not there.

Its a fairly rock solid 4.5-5% gross rental yield. Its the sort of investment that might appeal to a pension fund etc- someone risk averse- with a guaranteed, but unexciting income...........

The_Conductor

Technically- you could put in region of 6,000 high density 1-2 bed units in there- and get an average gross yield of roughly 50% higher than retail. In addition- the development plan supports a proposition of this nature (though how it might be viewed by current residents of the area is anyone's guess).

As for splitting up the units and selling them separately- there is no real discount built into the sale price of a billion for the whole centre- its pretty much what you'd get if you sold them individually (but obviously its a lot less trouble to sell the whole centre).

I'd suggest its a reasonable asset for a pension fund- bit boring, the rental yield is not brilliant- but is safe, there is upside potential for residential development of 6,000-6,500 units onsite (this is where the money might be).

All-in-all- its hard to make a compelling case that its value for money at the proposed price tag.

handlemaster

The only mention 600 apts . Transport would have to improve to make more work able . If they got the métro going there the value would shoot up