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Retail warehouse in Letterkenny for sale for €3.7m

Commercial agents Bannon are quoting €3.7 million for a high-profile retail warehouse investment at Letterkenny, Co Donegal, which it said will provide a net income yield of 11%.

The 2,804 sq.m (30,203 sq.ft) warehouse is occupied by Currys PCWorld and Crown Paints at a combined current rent of €428,000 and a weighted average lease term of 6.4 years to break.

The Currys lease, worth €388,000 annually, has the added benefit of a fixed rental uplift at the next rent review in 2019, which will see the rent go up by 15.9%. This will increase the income yield to more than 12.6%.

Crown Paints has occupied its unit since 2004, and pays a rent of €40,000 per annum. The company will have rights to a new lease when the present arrangement expires in 2019.

David Carroll of Bannon said he was expecting good interest in the investment given the attractive income yields on offer and the proximity to the vibrant Letterkenny Retail Park. Tenants there include M&S, H&M, TK Maxx, Boots and River Island.