Fully-let industrial unit in Galway city for €3.75m – Business Post, Nov 01, 2020

The manufacturing property extends to over 19,000 square feet and has a secure ten-year lease term

Unit 19 Mervue Business and Technology Park, Galway
 Unit 19 Mervue Business & Technology Park is occupied by Delcath Systems and Goodman Medical Ireland
Tina-Marie O’Neill

Commercial agent TWM has brought Unit 19 Mervue Business & Technology Park in Galway to the market with a guide price in excess of €3.75 million.

Unit 19 comprises a mid-terrace ‘northern light’ industrial manufacturing property extending to 19,266 square feet (1,790 square metres) in one of the top IDA industrial park locations within Galway city.

Currently occupied by Delcath Systems and Goodman Medical Ireland, this prime industrial opportunity would provide an investor with the benefit of 10.8-year term certain together with significant landlord-owned fit-out and excellent quality tenant covenant strength for a bankable investment, according to TWM‘s selling agent Sarah Winters.

Unit 19 is laid out to a high standard, comprising a combination of offices, clean rooms (designated ISO 8), warehousing and laboratory accommodation.

Previously occupied by Abbott Laboratories, significant investment was made to construct the class 8 clean rooms and laboratory space, subsequently commissioned by Goodman Medical upon their occupation of the building.

Galway has established itself as a hub for pharmaceutical/medical manufacturing and ancillary engineering services, with many national and international occupiers in this field.

This particular business park is home to a number of those, including Penn Engineering, Air Nelipack, STERIS and Dawnlough Precision Engineering. Both Goodman Medical and Delcath Systems are wholly owned subsidiaries of international companies which manufacture and develop medical devices.

This modernised commercial building is fully let realising an annual rent of €187,209 per annum to August 2021, after which a new ten-year fully repairing and insuring lease has been executed which will increase the annual rent to €298,871. This ten-year lease incorporates a CPI-linked rent review in 2026.

TWM’s guide pride reflects a net initial yield of 4.54 per cent increasing to 7.25 per cent in August 2021 (assuming standard purchaser costs of 9.92 per cent). Winters is expecting a good level of interest in the property due to the long secure lease term to excellent tenant covenants.

According to Winters, the absence of good quality commercial investment product within the Galway market, together with the high quality landlord-owned fit-out of the subject property, will attract interest not only from private investors and smaller funds but also from larger funds looking to regional markets for diversity and strong tenant covenant strength to bolster their portfolios.

For more details, contact the agent at 091-458987.