Lloyds Banking Group brings re-branded Spectrum portfolio to market for €120m

Lloyds Banking Group has launched the sale of a seven-strong portfolio direct Irish retail assets in the renamed as reshuffled Spectrum portfolio which is seeking offers in excess of €120m.

Spectrum logoThe Spectrum portfolio, renamed from the portfolio’s original name of Project Thomond after peripheral Limerick assets were removed, now comprises of properties across the retail spectrum:  retail warehouse, grocery retail centres, town centre retail and a suburban shopping centre.

Lloyds has jointly instructed Savills and Bannon, as revealed by CoStar News in a story first trailing the previously-named Project Thomond back in June.

The Spectrum portfolio’s seven assets produce approximately €11m of income, which at a sale price of €120m would offering a net initial yield in the region of 9%. 

The retail schemes include:

  • Douglas Court Shopping Centre, South of Cork City. WAULT, 7.64 years, 85% occupancy, annual rent: €3.9m;
  • Dundalk Retail Park, Dundalk, Co. Louth. WAULT, 8.32 years, annual rent: €2.46m;
  • Quayside Shopping Centre, Sligo Town. WAULT, 3.97 years, annual rent: €1.28m;
  • Bloomfields Shopping Centre, Dun Laoghaire, Co. Dublin. WAULT 7.2 years, annual rent: €852.2m
  • The Mill Shopping Centre, Clondalkin, Dublin 22. WAULT 10.9 years, annual rent: €1.29m;
  • Kilbarrack Shopping Centre, Dublin 5. WAULT 11.79 years.  Annual rent: €721m;
  • a State let office block opposite The Mill Shopping Centre on Ninth Lock Road, building let in its entirety to Dublin City Council and the OPW. WAULT, 5 years, annual rent: €451.5m.

Combined, these assets provide approximately 569,000 sq ft of commercial accommodation and over 31 acres of development land.   Anchor tenants within the schemes include Tesco, Dunnes Stores, Woodie’s, TK Maxx and Boots.   

The top 15 tenants deliver €4.56m, or 36% of the Spectrum portfolio’s €11m anneal rent.  In total, there are over 170 tenants and 3,600 car parking spaces in these seven locations.

First round bids are called for 10 October, with second and binding bids expected three weeks later before closure with the winning bidder slated for mid-November.

In a joint prepared statement, Fergus O’Farrell, director of investments at Savills Ireland and Roderick Nowlan, director of investments at Bannon said:

“The retail sector is clearly reaching a turning point.  Retail sales are steadily increasing, there is a dramatically improved labour market and the prospect of more neutral budgets are now feeding through to the retail economy.

“This hasn’t gone unnoticed by investors, who are now beginning to seek opportunities in this space. Therefore we expect interest in The Spectrum Portfolio to be strong due to the diverse collection of assets on offer and its exposure to all sectors of the Irish retail market.”

jwallace@costar.co.uk

About CoStar News

Finance Editor, CoStar News
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