Friends First acquires Blackrock Shopping Centre

ONE of Ireland’s leading life assurance companies, Friends First, has acquired the majority stake in the iconic Blackrock Shopping Centre.

Friends First previously owned 34 per cent of the centre through an internal fund and it has now, through the Friends First Irish Commercial Property Fund, acquired the remaining 66 per cent from Musgrave Operating Partners Ireland.

Eugene Gibney, Head of Friends First’s Investment Division, said they were delighted to be in a position to acquire the majority interest in the centre.

“We plan to further invest in this asset to drive footfall at this prime location,

? he said.

“The Irish commercial property market has become increasingly competitive in recent months, with a large pool of local and international investors chasing a limited supply of prime retail assets, so this opportunity delivers real value for our investors.

?

The Blackrock Shopping Centre (which includes adjacent offices) is currently generating a rental income in excess of

?¬5 million per annum.

Musgrave Operating Partners Ireland is the anchor tenant in the centre.

The sale will have no impact on the day-to-day operations of the current tenants of the centre.

Friends First is actively reviewing other similar market opportunities.

“We are delighted to be able to deliver this transaction which significantly enhances the value of the Friends First Irish Commercial Property Fund while allowing us to deliver an improved yield to our investors,

? added Mr Gibney.

“In addition the centre offers a range of improvement options from minor reconfiguration works to a more fundamental upgrade of the infrastructure to enhance the shoppers’ experience.

?

Meanwhile, a landmark residential scheme on the Southside has gone on the market for $80 million.

The high-profile Rockbrook Estate in Sandyford, Dublin 18, is being sold by Savills on the instructions of Pearse Farrell, Receiver, Duff & Phelps.

The guide price for the property equates to an initial gross income yield of approximately 5.2 per cent after standard purchaser’s costs.

The Rockbrook Estate was partially constructed in 2007 and incorporates an integrated mixed use scheme.

The development extends over a 7.7 acre site that comprises two complete residential blocks, known as Grande Central and South Central, ground floor mixed-use commercial accommodation, known as the Boulevard, and three levels of basement car parking.

In addition to this, the development also incorporates a strategic 2.8 acre partially developed site.

The residential blocks comprise 419 apartments in total, 270 of which make up the subject sale, 81 apartments in Grande Central and 189 in South Central.

The 270 apartments are virtually fully occupied and consist of 46 one bedroom, 203 two bedroom and 21 three bedroom apartments.

The average monthly rent for a one-bedroom apartment in the scheme is approximately

?¬1,136 with recently agreed rents increasing to

?¬1,250 per month.

Dessie Kilkenny, the Director of Investments at Savills Ireland, said the Rockbrook Estate was a high profile opportunity for investors and developers seeking to secure prime assets of scale.

“Sandyford and the greater Dublin area has been the focus of many investors who are looking to position themselves with exposure to the multi-family and development sector in prime suburban markets,

? he said.

“This sector of the market is in advanced growth mode from a yield, rental and capital growth perspective.

“We have already witnessed this through the sales of Central Park, Heuston South Quarter and Clancy Quay and similarly expect the same from the current sales of Project Orange and Cherrywood.

?