Savills has launched the Paddy Power Irish sale and leaseback portfolio – one of the most high-profile Irish retail investment sales of 2019.
The portfolio offers investors an opportunity to acquire a selection of long-established owner-occupied Paddy Power properties located in Dublin, Cork and a number of leading provincial towns at an initial combined net rent of €480,000 per annum.
Stephen McCarthy of Savills is offering the entire portfolio in one single lot with a guide price of excess €6.3m, which equates to a net income yield of 7%.
Tenancy Detail & Covenant
Flutter Entertainment plc, which is the parent owner of Paddy Power, will take a new lease on each property. Each lease will be for a term of 15 years with 5 yearly rent reviews to the higher of open market or CPI. Each lease will provide for a tenant only break option at the expiry of year 10 of the term.
Flutter Entertainment plc, which posted 2018 group revenues of GBP £1.873 billion, is the leading international sports betting and gaming group, a constituent of the English FTSE 100 and Irish Stock Exchange and has over 7,500 employees globally.
The portfolio offers investors a well-balanced geographical spread of properties, eight of which are in Dublin, including Upper Baggot Street, Parnell Street, Artane, Cardiffsbridge Road & Finglas Village, Crumlin, Ballymun and Clondalkin.
The remainder of the properties all occupy strong provincial town locations including Drogheda, Maynooth, Thurles and Tralee. The portfolio also includes the Paddy Power betting shop located at Cornmarket Street in Cork city centre. All information in relation to the portfolio can be viewed in the dedicated data room www.PPsaleandleaseback.com
Stephen McCarthy, Head of General Retail Agency, Savills Ireland commented;
“The Paddy Power Portfolio offers investors an opportunity to acquire a variety of long-established and well-located Dublin and Cork city centre properties complimented with a host of established suburban and provincial town locations offering the purchaser long term market rent protection underpinned by an exceptional global plc covenant”.