Donegal’s biggest shopping zone is to be put on the market after it went into receivership.
The Letterkenny Retail Park, which has 38 shops including TK Maxx, Next, Smyths Toys, Homebase, Halfords and Boots Chemist, is one of the busiest shopping areas in the region.
It is one of five shopping areas being offered for sale under the instructions of Bank of Ireland.
Agents Savills and JLL are seeking in excess of €162 million for the five properties which are currently producing a gross income of €12.2 million.
However Letterkenny is the the largest shopping facility in the portfolio with 38 shops covering an area of 35,302sq m (380,000sq ft) and currently produces a rental income of €3.06 million per annum.
The sale of the Letterkenny Retail Park is unlikely in any way to have any effect on the current shops.
KPMG is handing the receivership of the Donegal shopping zone.
The rental income from the Letterkenny centre is set to increase significantly when a rent-free concession offered to H&M is due to run out in 2016. The fact that the average lease has more than nine years to run will also be a strong selling point.
The four provincial parks to be sold in one lot with a valuation of over €100 million are Letterkenny Retail Park; Sligo Retail Park, Tullamore Retail Park and Deerpark Shopping Park in Killarney.Tags: