City Square up for sale with €22.5m guide price

An artist's impression of the redeveloped City Square, which has been placed on the market.

An artist's impression of the redeveloped City Square, which has been placed on the market.

Waterford’s City Square Shopping Centre is up for sale, with a guided price of €22.5 million quoted for the landmark complex.

Should the sale proceed successfully, it is expected to be followed by a revamp at City Square and the addition of some major new retailers, The Irish Times has reported.

Irish and overseas funds are both rumoured to be interested in the property, which currently houses 35 businesses and is producing an annual rental income of €1.7 million.

Joint agents DNG Commercial and JLL say several leases at City Square are due to run out shortly, which would allow for the creation of a ‘significant number’ of larger units.

DNG Commercial’s Simon Plunkett has estimated that it will cost in the region of €2.5 million to complete the works, which will include repositioning the frontage of the centre and constructing a two-storey extension which will create a further 1,600sq m (17,222sq ft) of retail space.

This proposal envisages the upgrade of the key approach to City Square from Broad street via Peter street and the establishment a new high quality retail environment on the Peter street side, as well as the location of a new a two-storey retail MSU (major space user) unit of 1300m², a single storey retail unit of 170m² and additional remote storage space at this end of the centre. Planning permission for this scheme was granted without recourse to An Bord Pleanala.

Four shops needed to facilitate the extension are understood to have been taken back by City Square management, who declined to comment on the plans. A further four are also vacant in the centre.
The Irish Times reports that, aside from anchor stores Dunnes and Debenhams, River Island is currently one of the highest paying tenants in City Square (€173,500).

Cards & Things has had its rent abated from €258,250 to €160,000. GameStop is also paying an abated rent of €125,000, rather than the contracted rent of €165,000. Burger King is paying €150,000; JD Sports, €130,000; Specsavers, €120,000; Eircom/Meteor, €90,000; Peter Mark, €80,000; Holland & Barrett, €70,000 and Mulligans Chemist €65,000.

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