French investor Iroko Zen has expanded its presence in the Irish investment market with the successful completion of its seventh acquisition.
The investment fund has acquired the premises of the renowned DIY retail giant Woodie’s, located on Cork Road in Waterford city, for a total sum of €9.8m ($10.7m). The property in question encompasses a substantial high-bay retail warehouse boasting a sizeable 4,277.18 square meters (45,039 square feet).
This property is currently leased to Woodie’s DIY, with a guarantee from its parent company, the Grafton Group. The lease, which commenced in June 2007, extends for 25 years, concluding in June 2032.
Notably, the lease incorporates five-yearly upwards-only rent reviews. The present annual rent stands at €909,184, contingent upon the tenant’s adherence to payment terms.
Woodie’s – a household name in DIY retail
Woodie’s is a household name in Ireland, renowned as the country’s largest DIY, home and garden retailer. With a network of morethan 35 stores nationwide, the company employs approximately 1,400 staff members and has been serving Irish customers for more than three decades.
Situated on a 3.4-acre site adjacent to Lidl on Cork Road, the property enjoys a strategic position between the Ivory Retail Park and Kingsmeadow Retail Park.
Cork Road is merely 1.5 kilometres away from Waterford city centre. According to the 2022 census, Waterford city boasts a population of 60,079, making it the fifth-most-populous city in Ireland.
Iroko Zen’s ongoing investments
Iroko Zen’s latest acquisition of Woodie’s DIY store comes just four months after their sixth Irish investment.
In May of this year, the company secured Westland House (Block A), a fully occupied three-story office block at Westland Park in Dublin 12 for €4,970,840. In March, they acquired units 5A and 6 at Galway Retail Park for €4.965m.
In January, Iroko Zen secured ownership of South Quarter Airside near Swords in north Dublin, completing an €18m deal with the Michael J Wright Group.
Positive response from industry experts
Commenting on the recent acquisition, Colliers head of capital markets Michele McGarry expressed satisfaction, stating: “We are delighted to have concluded the acquisition of Woodies in Waterford on behalf of Iroko Zen.
The long unexpired lease term, coupled with the quality of the covenant underpinned the investment proposition.”
Cushman & Wakefield divisional director Peter Love, who acted as the joint acquisition agent on the deal, highlighted: “This transaction further underpins the strong demand for retail warehousing throughout Ireland and for the calibre of covenant offered by tenants such as Woodie’s DIY.”