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Roscrea Tesco Store Considered A 'Risk Free' Buy

Thursday, 2 February 2017

THE TESCO SUPERMARKET in Roscrea is up for sale with a €12.5 million price tag and is expected to be very popular among prospective buyers seeking what investors call a 'risk free' deal.
Six years ago, when Ireland was still in the doldrums after barely emerging from the wreckage of the 2008 banking fallout, only two large scale investment deals happened in Ireland and one was in Roscrea - the pre-funding of the Tesco Supermarket in the town centre.
Its location was the subject of great controversy among the people of the town, due to its proximity to the Round Tower and old gable on the grounds of the Church of Ireland, but the development went ahead and was funded by Israeli developer, Igal Ahouvi.
Following the completion of the new property in 2011, Tesco moved from its smaller 1,900 sq m (20,000 sq ft) store which was in the Roscrea Shopping Centre, to the state-of-the-art, stand-alone 4,300 sq m (46,000 sq ft) store it occupies today.
Constructing the building was considered to be a very audacious decision, because Ireland was not at the top of the list for overseas investors because of the terrible financial circumstances in which the country found itself.
But, because of that decision to push ahead with the development in tough times, today the sale of the property provides an opportunity for what finance and property experts are calling 'a risk-free investment with an attractive income return in Roscrea.'
The Tesco building is being brought to the market by property investment specialists TWM for €12.5 million, a price the company Director, Sean O'Neill, says will provide a 'long-term secure income stream with a net initial return of 7.25pc.'
The property is situated in the centre of the town beside Roscrea Shopping Centre and is a modern detached retail building with the supermarket at ground-floor level and car parking at lower ground-floor level with 224 car parking spaces.
The property is let to Tesco Ireland for €950,000 a year on a 35-year FRI (Full Repairing and Insuring) lease from July 1st, 2011, with a tenant break option in July 2026.
Tesco Ireland, who have 148 stores in Ireland and employ 14,500, is a wholly-owned subsidiary of Tesco Ireland Holdings Limited with the ultimate parent company being Tesco Plc.
Sean O Neill, Director of TWM said he expects 'good interest from those investors seeking a high income return with little risk.' He added that opportunities such as that in Roscrea are 'much in demand but not generally available in the investment markets at present.'

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