Roscrea Tesco sold for €7.8 million

Roscrea's Tesco supermarket has been sold to a private investor for €7.8 million.

Selling agent TMW has reported that the town centre property was sold late last year after some bidding competition. There is strong demand at the moment for good quality well-designed and built grocery investments; TMW said the Tesco supermarket in Roscrea was attractive because of its location, parking facilities and design. The supermarket's wide aisles were also a key feature, lending shoppers a feeling of safety amid coronavirus concerns.

Built by by Tiernan Properties Ltd, Roscrea Tesco comprises a 4,273 sq m (45,000 sq ft) supermarket built over a 224-space car park. It replaced the old Tesco store at Roscrea Shopping Centre, which was only around half the size of the current complex.

Israeli owner Igal Ahouvi, Chairman of Ravad Ltd, invested in the Roscrea store while it was being redeveloped in 2011. Ravad PLC was reported at the time to have advance purchased the new store for around €13 million.

In 2017 the property appeared on the market as part of a supermarket portfolio including Aldi in Cahir, Tesco in Gorey and Aldi in Sandyford. Earlier that year, Roscrea's Tesco store was advertised for sale with an asking price of €12.5 million.

The supermarket was let to Tesco Ireland on a 35-year (FRI) Full Repairing & Insuring) lease from July 2011. There is a tenant break option after 15 years, which is in 2026. The annual passing rent is €950,000 per annum.

According to an Irish Times article last week, the sale price of €7.8 million will provide the purchaser with an initial net return of 11%.

The lease to Tesco provides for an uplift in the rent next year on a Consumner Price Index mechanism whereby the accumulated CPI uplift over the first 10 years of the lease is applied to the rent.