33 Shop Street, Galway

Prime Retail Investment Opportunity
For Sale by Private Treaty (Eason Store Not Affected)

Tenancy

Let to Eason Limited on a new 25 year FRI lease at an annual rent of €525,000. The lease provides for five yearly open market rent reviews and a break option (in favour of the tenant) at the end of year 10 subject to six months’ prior written notice.

 

COVENANT

Eason is Irelands leading books, stationery, news and magazines retailer with a portfolio of 60 stores nationwide and employing approximately 800 people. Eason Limited had a turnover of €109m in the year ended January 2018, with a profit after tax and restructuring costs (€3.3m) of €0.7m. The profit after tax for the year ending January 2019 is expected to be approximately €3m bringing the balance sheet value to c.€6m. Full accounts for 2018 and draft accounts for 2019 are available on request.

A parent company guarantee from Eason Operations Limited (EOL) will be provided for 10 years. This is a newly incorporated parent which has zero borrowings and holds €17m cash on its balance sheet in addition to £2.5m GBP of unencumbered property in Northern Ireland. This guarantee will be limited in terms of financial exposure to 2 years’ rent. Full draft accounts for EOL are available on request.