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NAMA brings big portfolio to market

Wednesday, April 30 15:47:54

NAMA has confirmed the huge scale and the identity of its first retail property portfolio to go on general sale with a guide price of around E130m.

The Acorn Portfolio includes prime locations in Cork and Clonmel as well as Dublin and is to be brought to market next week through Bannon and JLL.

It includes Blackpool Shopping Centre and Blackpool Retail Park in Cork, Millfield Shopping Centre in Balbriggan, Dublin and The Showgrounds Shopping Centre in Clonmel, County Tipperary.

The combined offering produces over E13.18m of rent roll (after allowing for any abatements), over 70pc of which is let to institutional tenants with a lease term certain of almost 11 years. There are 120 tenants and just over 720,000 sq.ft. of space, including almost 100,000 sq. ft. of high grade office space at Blackpool. The guide price is in excess of E130m, which - the selling agents say - is a very attractive initial yield of approximately 9.7pc.

The theme of the portfolio is "Catchment Dominance" as each scheme dominates its own target catchment area.

In Cork, while four retail schemes battle it out for retail spend on the south side of Cork the combined Blackpool scheme dominates the catchment of North Cork with a draw that extends to Mallow and beyond. The Shopping Centre and Retail Park together produce approximately E6.7m of rent per annum while the offices produce over E1.3m . The Retail Park element is anchored by Woodies, Aldi, Boots, Heatons, Maplin and Next Home (making up over 70pc of the retail park rent). The shopping centre comprises over 120,000 sq. ft. of retail and office space, plus a 75,000 sq.ft. anchor unit owned by Dunnes Stores. Retailers include New Look, McDonalds, Peter Mark, Carphone Warehouse, Claire's Accessories, Boyle Sports, Sam McCauley's Pharmacy and Nature's Way.

The Blackpool scheme dominates the north inner city and wider North West region, with 1,800 free car parking spaces and almost no vacancy. The Shopping Centre and retail/office park are owned by companies under the control of the Shipton Group which is owned and operated by experienced developer and property professional Neil Love. Shipton's in house management teams have run the assets since their inception.

Millfield Shopping Centre in Balbriggan is the dominant convenience scheme in this part of North County Dublin with one of the largest Tesco stores in the country as its anchor. This 103,500sq.ft Tesco store is leased, as opposed to owned, and as a consequence this unit alone contributes E2.34m per annum to the Acorn Portfolio (with 16.9 years remaining on the lease). This income is complemented by occupiers such as McDonalds, Carphone Warehouse, Boots, Specsavers, Ladbrokes and Nature's Way which together with Tesco contribute 84pc of the income.

The final centre in the portfolio is The Showgrounds, Clonmel, making up approximately 11pc of the portfolio income at approximately E1.45m per annum. This scheme benefits from 3 strong anchors namely Marks & Spencer, Iceland and TK Maxx. The latter tenant joined the line-up as recently as last year and has already impacted very positively with footfall up 11pc. The Showgrounds is now the dominant comparison centre for Clonmel and the wider South Midlands Region, complementing the strong fashion offer available in Clonmel Town. The buyer will also benefit from an adjacent 12 acre development site zoned commercial use for future development. Grant Thornton were appointed receivers over the asset a number of years ago on behalf of NAMA.