Kilcolgan neighbourhood centre anchored by busy high-profile Circle K petrol station
A high-yielding commercial investment with potential for further income growth is on offer at a guide price of €1.95 million in the Galway village of Kilcolgan.
The neighbourhood centre, which extends to more than 30,000sq ft, is anchored by a high-profile Circle K petrol station, together with an additional 14 retail units laid out over three blocks on a site of 1.21 hectares (3.0 acres). The tenant mix, which currently includes Circle K, Mother Hubbards, Bar One Racing, Doc Fitness, Ken Horan Motors and Q-Beauty, is producing a total annual rent of € 208,960, with scope to increase this through the letting of the vacant units and asset management. The guide price of €1.95 million equates to an attractive net initial yield of 9.8 per cent.
Kilcolgan village is at the mouth of the Kilcolgan river at Dunkellin Bay, 19km southeast of Galway city centre. The subject property occupies a prominent position at the junction of the N67 Galway Gort road and R458 Galway Clare road accessing the popular tourist destinations of Kinvara, Ballyvaughan and the Burren. The village has experienced significant expansion in recent years with the increased construction of predominantly one-off housing developments and commercial retail and office buildings.
Sarah Winters, who is handling the sale for TWM, expects strong demand from investors looking for high-yielding investments with potential for further growth.
She says: “The €1.95 million guide price represents a rate of just €65 per square foot, which is significantly less than the reinstatement costs for a development of this nature. This investment is further underpinned by its busy location and the fact that 56 per cent of the total rent is from Circle K. This provides good, secure income for investors.”