Savills Ireland, the leading property advisory firm, has announced the successful sale of Forestside Shopping Centre for £42m pounds – significantly above the guide of £37m and reflecting a net initial yield of 7.91%.
Launched to market by Savills in May of this year, Forestside Shopping Centre is a 336,000 sq ft prime shopping centre in south Belfast and is considered the city’s premier out of town retail scheme. The centre is fully let with over 35 units, anchored by Sainsburys, Marks and Spencer and Dunnes Stores, all three of which are held on a long leasehold.
Ben Turtle, Director of Investment at Savills Belfast, who handled the sale, comments: “We are delighted to have completed the successful sale of Forestside Shopping Centre, Belfast’s dominant out-of-town centre. The net initial yield of 7.91% is significantly ahead of market comparables in both Northern Ireland and Great Britain, and reflects the quality of the asset. The transaction is evidence of growing investor appetite for such prime product in Northern Ireland, and we are pleased to have achieved this stellar result for our client despite some current headwinds.”
81% of the gross income secured against tenants in the centre is of minimum/below average risk and the centre’s gross income is £3,664,528 p/a. In addition to the anchors, it further boats an exceptional range of national and global retailers including Boots, Next, H&M, Superdrug and Waterstones to name a few. Forestside lies approximately 3 miles south of Belfast City Centre and is well served by public transport.