Independent - June 20 2007:
The Layden Group has acquired a Bank of Ireland retail property portfolio in a sale and leaseback deal comprising a total of 30 properties around the country.
The 30 properties — which were guiding €89.5m — achieved a price of €94m, reflecting an initial yield of 3.9pc. The portfolio, made up of 29 retail branches and one call centre, was sold through CBRE property consultants.
The price attained underlines the continuing appetite for properties with “blue-chip” covenants in prominent locations. The branches are spread throughout Ireland with eight situated in Dublin, three in Ulster, seven in Munster, four in Connaught and 8 in Leinster (minus Dublin).
Each property contained an option on behalf of the purchaser to elect for either a fixed 15pc uplift at the first review or an open market rent review. The agents were quoting guide prices ranging from €5.42m for a branch in Mallow to €1.22m for one in Edenderry, Co Offaly. The entire portfolio will produce rents of just over €4m.
Commenting on the sale, Robert Murphy of CBRE noted that the demand for the individual branches was high. However, he added that there were a number of single bids for the portfolio “at yields that recognised the potential for strong retail growth and long term development opportunity.”
The Layden Group is a privately owned family business founded by Joe Layden some 30 years ago. It is a highly successful company with substantial property interests in the commercial and retail markets in Dublin, in the provinces and in Germany.
This is the second tranche of sale and leaseback properties recently disposed of on a sale and leaseback basis by BofI. Its initial sale of 36 branches last autumn attracted the interest of institutions and managers of private equity funds as well as prominent investors.
About half of the branches were sold with full 25-year leases as against 15-year leases in the present isntance. These properties realied around €240m in total.
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