The Delvin Centre in Stamullen, Co. Meath, has been sold for €2.35m – some 23pc above the guide price that had been sought by agents TWM when they brought it to the market on the instruction of receiver Stephen Tennant of Grant Thornton.
Located on the main road in Stamullen, a village on the border of Dublin and Meath and 35km from Dublin city centre, the scheme consists of a mix of retail and residential tenants, producing a combined rental income of €242,100 per annum.
The price achieved for the development reflects a net initial yield of 9.86pc (assuming standard purchasing costs of 4.46pc).
Completed in 2006, the Delvin Centre comprises 756 sq m (8,138 sq ft) of commercial accommodation that was originally laid out in seven retail units on the ground floor with 986 sq m (10,613 sq ft) of residential accommodation overhead.
Five of the retail units were amalgamated into one larger unit to accommodate a Centra store, while the two remaining units are currently let to a pharmacy and beautician. The development represents the main commercial offering in the village.
€156,300 of the scheme’s annual income is derived from the commercial element, which has a weighted unexpired lease term of 19 years.
Each of the seven residential units are let individually on short-term tenancy agreements.
Ben Haythornthwaite of TWM said: “The high yield coupled with 100pc occupancy resulted in a significant amount of interest, both from local investors and further afield. The property is very much fit for purpose and this attracts investors.”