New Tesco Development, Roscrea
A major Israeli investor, trading as RAVAD Ltd, is to invest €13m in a new Tesco store in Roscrea, Co Tipperary.
This property investment company is to ‘forward purchase’ the new Tesco store in the newly redeveloped town centre in Roscrea. Ravad plc, which is listed on the Israeli stock market, is to pay the €13 million for the 4,273sq m (45,000sq ft) supermarket in a deal that will show an expected return of 7%.
RAVAD Ltd and an unknown buyer acquired the 2.5 acre lot in County Tipperary from Tesco PLC on October 17th, 2010, with Ravad Ltd. acquired a 50% stake for €6.6 million. The other buyer acquired the remaining 50% stake.
Tesco will build a 4300 square meter supermarket on the lot and will lease back the premises for 15 years.
This sale may now encourage the National Asset Management Agency (Nama) to proceed with the disposal of some of the many Irish retail property assets presently under their control, following it’s ‘purchasing in’ of numerous distressed loans, all of which were acquired at substantial discounts.
The present Government has already indicated that it wishes Nama to proceed with its planned disposal programme. While the Tesco brand undoubtedly has a broad appeal among international investors, this decision by a major player, like Ravad Ltd, to invest in a provincial town in Ireland, will certainly take the Irish property market by surprise.
Currently under construction, this new store is being built above a 224 vehicle parking space area.
Leave a Reply