Landmark scheme developed by Michael Tiernan and the late Owen O’Callaghan producing €1.45m in annual rental income
Having built and then presided over Arthur’s Quay Shopping Centre in Limerick for more than 33 years, developer Michael Tiernan has retained agent TWM to find a buyer for the scheme. The property, which Tiernan delivered in partnership with the late Owen O’Callaghan, is being offered to the market on behalf of Tiernan Properties at a guide price of €15 million.
The property, located on a high-profile island site in the heart of Limerick city, comprises a mixed-use complex of 7,178sq m (77,266sq ft). Some 4,990sq m (53,712sq ft) of this space is taken up by the retail element of the scheme while 1,491sq m (16,049sq ft) is laid out as office accommodation over four floors. There is also an extensive multistorey car park with 570 spaces and 10 apartments. The shopping centre is anchored by a 3,065sq m (33,000sq ft) Tesco supermarket, and there are 23 mall units over ground and first floor together with a food court and five kiosk units. Occupiers within the centre include Regatta, Craghoppers, Holland and Barrett, Bowes Ryan and Cats Hair Salon while the office occupiers include Rogerson Reddan, the Irish Centre for Business Excellence and Redfaire. The centre is generating about €1.45 million in rental income annually. Should a sale proceed at the €15 million guide price, the selling agent estimates the new owner would be in line for a net return of 9 per cent on the commercial element of the scheme in addition to the car park and apartments.
Quite apart from its immediate income and asset management potential, Arthur’s Quay Shopping Centre comprises a central piece of the proposed redevelopment of the overall city centre as envisaged by Limerick City Development Plan, the Limerick 2030 Economic and Spatial Plan and the current framework plan for the Arthur’s Quay Area. This area has been identified in Limerick 2030 as a priority project with the potential to revitalise the city centre. Urban regeneration and development funding (URDF) funding of €116 million for the regeneration of the city was approved by the Government in 2021. A significant portion of this money is to be used for the development of world-class waterfront on the river Shannon at Arthur’s Quay.
Sean O’Neill and Sarah Winters of TWM say they expect Arthur’s Quay Shopping Centre to be of interest to parties looking for a “solid, high-income return” and to investors and developers attracted by the scheme’s medium-term development potential.