THE SUPERMARKET COLLECTION - TWM
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THE SUPERMARKET COLLECTION
CONTENTS THE OPPORTUNITY 1 INVESTMENT SUMMARY 4 INVESTMENT HIGHLIGHTS 5 TENANT COVENANT 6 WHY INVEST IN IRELAND? 8 PROPERTIES 10 PROPOSAL & FURTHER INFORMATION 18 CONTACT DETAILS 19
THE OPPORTUNITY
The Supermarket Collection offers investors
a superb opportunity to acquire four
BLEFAST
supermarket assets in strong trading locations
providing a significant long income portfolio.
• The collection is being offered for sale by Private Treaty
SLIGO as one or a combination of lots
• Guide Price: In excess of €49m
• Total Current Passing Rent: €3.41m per annum
• Net Initial Yield: 6.66% with the benefit of CPI uplifts
• WAULT of 11.34 years
• Tenants not affected
M1
M6 M4
GALWAY
QDUBLIN
ALDI SANDYFORD
M7
Q
BIRR
TESCO ROSCREA M11
ARKLOW
TEMPLEMORE M9
Q
LIMERICK M8 TESCO GOREY
CASHEL
TIPPERARY Q
ALDI CAHIR WEXFORD
WATERFORD
CORK
1–2
ALDI SANDYFORD TESCO GOREY TESCO ROSCREA ALDI CAHIR
Dublin Wexford Tipperary Tipperary
3–4
INVESTMENT HIGHLIGHTS
CURRENT COMBINED PASSING RENT
€3.41 MILLION PER
ANNUM
INCOME BY SUPERMARKET INCOME BY LOCATION
gg Q
Gorey 46.04%
74% 26%
Roscrea 27.86%
Sandyford 17.66%
INVESTMENT SUMMARY TESCO ALDI
Cahir 8.45%
Aldi Sandyford Tesco Gorey Tesco Roscrea Aldi Cahir
• Aldi, The Boulevard, • Tesco, Gorey, Co. Wexford • Tesco, Roscrea, • Aldi, Cahir, Co. Tipperary
WAULT CPI LINKED REVIEWS
11.34
Sandyford, Dublin 18 Co. Tipperary
• Let to Tesco Ireland • Let to Aldi Stores
40
Attractive
• Let to Aldi Stores • Rental income of €1.57 • Let to Tesco Ireland (Ireland) Limited income yield of
30
(Ireland) Limited
6.66%
million per annum with • Rental income of • Rental income of
YEARS
20
• Rental income of CPI uplifts (next uplift €950,000 per annum €288,223 per annum
10
€602,186 per annum in 2019) with CPI uplifts with CPI uplifts
with CPI uplifts • 25 year FRI lease from (10 year compounded (next uplift in 2020) for entire
(next uplift in 2021) 1 January 2014 uplift in 2021) • 25 year FRI lease collection
• 25 year FRI lease • 11.33 years guaranteed • 35 year FRI lease from 30 August 2010
from 11 October 2011 income (Break Option from 1 July 2011 • 18 years guaranteed
4
• 12.11 years guaranteed in 2029) • 8.83 years guaranteed income
income (Break income (Break 15,968 SQ. M
Option in 2029) Option 1 July 2026)
(171,878 SQ. FT) FOUR STRONG
of Supermarket accommodation
TRADING LOCATIONS
in the entire collection
4–5
WHY INVEST IN IRELAND?
Economy
• Fastest growing economy in Europe 2014 - 2016
• GDP growth forecast at 4.5% in 2017 and 3.6% in 2018
• Domestic factors contributing to higher growth
• Robust expansion of labour market with employment
expected to grow by 3.1% in 2017
• Unemployment stands at 6.3% (June 2017),
the lowest level on record since 2008
• Fastest growing population in the European Union
with a birth rate of 13.5 per 1,000 population
TENANT COVENANT
*Sources Central bank, Trading economics, Eurostat
Consumer Spending / Retail Sales
Tesco Aldi
Tesco Ireland is a wholly owned subsidiary of Tesco Ireland Aldi Stores (Ireland) Ltd is a wholly owned subsidiary of the
Holdings Limited with the ultimate parent company being UK parent company, Aldi Stores Ltd. Aldi does not disclose
Tesco plc. The accounts for Tesco Ireland are prepared on its sales or profits solely for Ireland. The group’s operating
a consolidated basis in the accounts of Tesco plc. Tesco plc profits for its UK and Irish operations in 2016 was £255.6m
reported an increase of 4.3% in Group Sales to £49.9 billion (€290.45m) with sales increasing to a record £7.7 (€8.75)
and a group operating profit of £1.28 billion for 2016. UK & billion across Britain and Ireland. Aldi currently operates 129
Republic of Ireland operating profit (before exceptional items) stores in Ireland. According to research conducted by Kantar
• Retail sales in Ireland increased 4.1% in June 2017
was £803m, up 60% on 2015, with margin growth of 68 basis Worldpanel, Aldi have a grocery market share of 11.4% in • Irish consumer sentiment has remained strong in the first 6 over the same period in 2016
points year-on-year. Ireland. months of 2017. The KBC / ESRI consumer sentiment index
• Retail sales growth averaged 1.77% from 2001 until 2017
increased from 100.5 in May 2017 to 105.00 in July 2017
Tesco Ireland Limited is the company which holds all of reaching an all time high of 13.1% in March 2015
• Consumer sentiment levels have returned to pre-2008 levels
the leases in the Tesco portfolio in Ireland. Tesco has 148 • According to Kantar Worldpanel the grocery sector grew
and are now ahead of the levels experienced during 2006
stores in Ireland and employs approximately 14,500 people. by €80 million over the three month period to 18 June 2017
Tesco Ireland reported a total revenue of €2.48 billion for • Consumer spending growth continued into 2017, up by 2.5%
• Tesco is currently second in the Irish Market with 22%
2016. Tesco Ireland reported improved like for like sales for Q1 and 4.2% for March, year-on-year
market share
performance of 0.1% and revenues of €1.2 billion for the first • Household disposable income rose by 5.5% in 2015 and by 4.4%
• Aldi has increased its market share to 11.4% with growth
half of 2016/17. According to Kantar Worldpanel, Tesco has in 2016 bringing it to a total of €98 billion, due to a combination
recorded at 3.7% in June 2017
a share of 22% of the grocery market in Ireland. of expanding employment and increasing pay rates *Source Kantar World Panel, Trading economics, CSO
*Sources ESRI, Trading economics, CSO, Marketing Institute of Ireland
6–7
Investment Property Market Property Performance V Alternative Asset Classes
• Property has been the best performing asset class
• Reflecting the confidence in the economy, over the past 5 years with returns of 18.6%, while
both domestically and internationally, 2016 was the equities provide a 12.4% return and bonds provide
most active year on record for the Irish Commercial a negative return of 7%
Property Investment Market with volumes exceeding *Source IPD / MSCI
€4.5 billion for asset sales
• Activity in the property investment market is a good Consumer Price Index (CPI)
illustration of the direction of the overall commercial
property market. Investors look to deploy capital
into sectors where there will be good growth over
typically a three year plus period
• MSCI returns for 2016 show an overall return
of 12.4% for the 12-month period
• The market continues to stabilise with a 4.1% total return
at Q2 2017 with rental value growth the driving force
*Source IPD / MSCI
Retail Property Market • Consumer Price Index in Ireland has continued to rise
in 2017 from 99.5 index points in January to 101 index
points in June reflecting a strengthening economic
backdrop
• It is forecast that Consumer Price Index in Ireland
is likely to increase to 110.00 in 12 months’ time
reinforcing Ireland’s strong economic growth
*Source CSO
• Returns are now largely driven by rental growth,
which is a more sustainable form of growth than yield
compression
• Retail investment activity has increased sharply, with
increased turnover of shopping centre and retail park
portfolios particularly in the last 18 months
• MSCI retail property return for 2016 was 12.9%
and returns of 2% were recorded in Q2 2017 8–9
*Source IPD / MSCI
SOUTH COUNTY BUSINESS PARK
CENTRAL PARK
M50
LUAS
STILLORGAN
ALDI
BEACON SOUTH QUARTER
THE BOULEVARD
PROPERTIES Location
Sandyford is one of south Dublin’s stronger suburban office,
Description
The supermarket is located at ground floor level extending
Tenancy
Let to Aldi Stores (Ireland) Limited on a 25 year FRI lease
retail and residential locations with a number of high quality to approximately 1,854 sq. m (19,956 sq. ft) with use of 100 from 11 October 2011 with a tenant break option in year 18
developments including Beacon South Quarter providing basement car parking spaces. Located within the Boulevard (2029).
Aldi, The Boulevard, 270,000 sq. ft. of retail accommodation and 1,100 high development the building comprises a six storey over Rental Income of €602,186 per annum with 5 yearly rent
end apartments, Beacon Hotel and Beacon Hospital and basement mixed use block with ground floor retail and
Sandyford, Dublin 18 Clinic. Significant occupiers in Sandyford include Microsoft, apartments overhead.
reviews, CPI linked with a yearly cap of 4%.
Vodafone, RCSI and Chill Insurance. The area is very well The subject unit is accessed from the ground floor with
• Long income from blue chip tenant with CPI uplifts served by public transport with a combination of Dublin own door access on street level, with access also provided Tenure
• Passing rent of €602,186 per annum Bus services nearby, along with convenient access to the internally from the underground car park. The store is fitted
LUAS Green line at Sandyford / Stillorgan which provides We understand that the property is held by way of Long
• 12.11 years secure income to break option in 2029 out to Aldi branded specification.
excellent accessibility to Dublin city centre and southbound leasehold title.
• Modern ground floor supermarket unit extending to Cherrywood.
to approximately 1,854 sq. m (19,956 sq. ft) The Boulevard is one of Dublin’s largest mixed-use Schedule of Accommodation
• 100 car parking spaces at basement level developments providing a full range of commercial and
residential facilities. The Boulevard boasts an impressive Floor Description Floor Area (sq. m) Floor Area (sq. ft)
• Located in Sandyford, a well-established and growing
residential population with over 450 apartment dwellings Ground Floor Supermarket & Store 1,854 19,956
commercial and residential location, approximately
which provide housing for many of the 12,000-workforce
9km south of Dublin City Centre Surface Car Parking 100
located in and around the scheme. In addition to this the
scheme also draws trade from an impressive surrounding Please note: All intending purchasers should satisfy themselves in relation
catchment of 925,000 people living within a 30-minute to floor areas
commute.
14–15
SUPERVALU
MAIN STREET
GOREY COURT HOUSE
TESCO DUNNES STORES
GOREY SHOPPING CENTRE
NEW APPLEGREEN / BURGER KING
Tesco, Gorey, Co. Wexford Location Description Tenancy
Gorey is a market town in north County Wexford, Ireland, The Tesco unit extends to approximately 8,109 sq. m (87,289 Let to Tesco Ireland on 25 year FRI lease from 1 January 2014
• Long income from blue chip tenant with CPI uplifts situated beside the main N11 Dublin to Wexford road. The sq. ft) with 606 parking spaces, on a site of approximately with tenant break options in Years 15 (2029) and 20 (2034).
• Passing rent of €1.57 million per annum town is also connected to the railway network along the same 3.44 ha (8.5 acres). The eco-friendly building is of timber Rental Income of €1.57 million per annum with 5 yearly
route. Gorey is approximately 45 minute’s drive from Dublin. frame construction with a metal deck roof and a mix of a rent reviews, CPI linked with a yearly cap of 3.5% and collar
• 11.33 years secure income to break option in 2029 thermowood cladding and glazed façade with surface level
The property is located within Gorey Town Centre adjacent of -0.5%.
• Modern supermarket extending to approximately 8,109 sq. to Gorey Shopping Centre. The centre is anchored by the parking to the front of the store. The property comprises
m (87,289 sq. ft) with 606 car parking spaces at surface largest Dunnes Stores in the south east of Ireland. The Tesco the ground floor supermarket with ancillary stores.
level on a site area of approximately 3.44 ha (8.5 acres) store has been further enhanced by the completion of a new Tenure
Applegreen petrol filling station and Drive Thru Burger King
• Located in Gorey town centre Schedule of Accommodation We understand that the property is held by way
restaurant which is located at the entrance of the centre.
of Freehold title.
Floor Description Floor Area (sq. m) Floor Area (sq. ft)
Ground Floor - Mezz Supermarket, Store & Office 8,109 87,289
Surface Car Parking 606
Please note: All intending purchasers should satisfy themselves in relation
to floor areas
12–13
DUNNES STORES
CASTLE STREET
TESCO
MAIN STREET
SUPERVALU
ROSCREA TOWN CENTRE
ALDI
TOWN CENTRE CAR PARK
Tesco, Roscrea, Co. Tipperary Location Description Tenancy
Roscrea is a busy market town located in the south midlands The property, constructed in 2011, comprises a modern Let to Tesco Ireland on a 35-year FRI lease from 1 July 2011
• Long income from blue chip tenant with CPI uplifts of Ireland. It is located approximately 44 miles (71km) north detached retail building with supermarket at ground floor with break options after years 15, 20, 25 and 30. The annual
• Passing rent of €950,000 per annum east of Limerick City on the N7, which links to the M7 Dublin level and car parking at lower ground floor. The property passing rent is €950,000 per annum and the lease provides
/ Limerick motorway. The M7 connects to the M8 motorway extends to approximately 4,333 sq.m (46,640 sq.ft) for the rent to be adjusted in line with the compounded
• 10 year compounded CPI uplift will accrue in 2021 approximately 22 km east of the town. The M8 links Dublin together with 224 car spaces. The building is of steel frame annual proportionate change in the Consumer Price Index
• 8.83 years secure income to break option in 2026 and Cork. construction with a metal deck roof and a mix of metal after year 10 and 5 yearly thereafter. The CPI uplifts are
The town has a population of just under 6,000 but the fact cladding and glazing to the façade. The lower ground floor subject to an annual cap of 4% and a collar of -1%. Therefore
• Modern supermarket extending to approximately
that it sits on a confluence of eight major and minor routes car park is accessed via a ramp from a roundabout on in 2021 a 10-year compounded annual CPI uplift will accrue
4,325 sq. m (46,553 sq. ft) with 224 car parking
makes it an important trading base for the wider hinterland Lourdes Road to the rear of the property. to the landlord.
spaces at basement level
population of more than 70,000. The main employment in The property comprises the supermarket with ancillary stores
• Located in the centre of Roscrea Town Centre with
Roscrea is in meat production and pharmaceuticals. The and customer toilets at ground floor with ancillary facilities
a wider hinterland population of 70,000 persons Tenure
property is located in the heart of the town beside Roscrea at first floor comprising staff canteen, lockers, toilets and
Town Centre. showers, offices and a comms room. There are two customer We understand that the property is held by way of Freehold
It benefits from excellent pedestrian access to the lifts and two travellators providing access to the supermarket and a 999 year long leasehold title.
surrounding commercial streets as well as being easily from the lower ground floor car park.
accessible for vehicles.
Schedule of Accommodation
Floor Description Floor Area (sq. m) Floor Area (sq. ft)
Ground Floor - Mezz Supermarket, Store & Office 4,325 46,553
Basement Car Parking 224
Please note: All intending purchasers should satisfy themselves in relation 10–11
to floor areasCARRIGEEN INDUSTRIAL ESTATE
CAHIR PARK GOLF CLUB
ALDI
CAHIR CASTLE
SUPERVALU
MARKET SQUARE / MAIN STREET
Aldi, Cahir, Co. Tipperary Location Description Tenancy
The Aldi supermarket is located in the centre of Cahir on This single storey retail unit extends to approximately 1,672 Let to Aldi Stores (Ireland) Limited on a 25 year FRI lease
• Long income from Aldi Stores (Ireland) Limited with Abbey Street. Cahir is a town located in County Tipperary sq. m. (18,000 sq. ft.) and has own door access with 94 from 30 August 2010 which provides an 18 year unexpired
CPI uplifts with a population of 3,593 people (Census 2016) with surface level car park spaces. The property comprises 1,115 sq. lease term.
• Passing rent of €288,233 per annum a further catchment area of over 10,000 people in the m. (12,000 sq. ft.) of retail space and 557 sq. m. (6,000 sq. ft.) Rental Income of €288,233 per annum with 5 yearly CPI
surrounding hinterland. Cork, Limerick and Waterford Cities of stores. The store is fitted out to Aldi branded specification. linked rent reviews (higher of contractual rent immediately
• 18 years secure income are within an hours’ drive of Cahir while Dublin is 178km to the before the relevant rent review date or CPI linked increase).
• Modern ground floor supermarket extending north east. Cahir is situated at a major national crossroads,
to approximately 1,672 sq. m (18,000 sq. ft) between two of the busiest national routes, the Dublin-Cork Schedule of Accommodation
• 94 surface level car parking spaces
N8 and the Waterford-Limerick N24. The town is also serviced
Floor Description Floor Area (sq. m) Floor Area (sq. ft) Tenure
by the Rosslare / Waterford-Limerick Railway line.
• Located within Cahir town centre with a catchment Ground Floor Supermarket 1,672 18,000 We understand that the property is held by way
area of approximately 10,000 persons of Freehold title.
Surface Car Parking 94
Please note: All intending purchasers should satisfy themselves in relation
to floor areas
16–17PROPOSAL & Proposal
The Supermarket Portfolio is for sale by Private Treaty. The
CONTACT DETAILS
FURTHER INFORMATION vendor will consider offers as one or a combination of lots.
(This is an investment sale and as a result the tenants are
not affected).
Sale Process Agent:
For sale by Private Treaty
TWM
Viewings 4/5 Dawson Street PSRA: 001835
Viewings are strictly by appointment through the selling Dublin 2 twmproperty.ie
agent, TWM.
BER Certificates Sean O’Neill Ollie Lyons James Loughnane
Available on request
+353 (0) 1 678 5901 +353 (0) 1 611 0328 +353 (0) 1 611 0321
sean@twmproperty.ie ollie@twmproperty.ie james@twmproperty.ie
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. 18–19DUBLIN:
4/5 DAWSON STREET,
THE
3RD FLOOR, DUBLIN 2
GALWAY:
SUPERMARKET
UNIT 11, DOCKGATE,
GALWAY
COLLECTION
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