Calibre / Irish Times - October 13, 2007
Tesco Ireland is preparing to sell its newly-opened distribution warehouse in Donabate, north Co Dublin, for more than 120 million. Under the terms of the deal, Tesco would lease back the 46-acre property for 25 years.
The Donabate warehouse covers 780,000 sq ft and has 79 loading bays. The site also has 600 car-parking spaces, a fuel island and a vehicle wash and steam cleaner.
A document being circulated to investors states that the initial rent will be 7 million a year, with annual reviews linked to the consumer price index up to a cap of 3.5 per cent. The initial net yield will be 5.24 per cent for the new owner. This yield is projected to grow to 9.71 per cent if inflation runs at 2.5 per cent a year over the 25 years of the lease.
Tesco, which has a 26 per cent share of the Irish grocery market, has engaged DTZ Sherry Fitzgerald in Dublin and Morgan Williams in London to market the property. Under the terms of the deal Tesco would be entitled to extend its facilities there or construct new buildings without the requirement for landlord consent.
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Saturday, October 13, 2007
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