The investment opportunity is created by way of a sale and leaseback to cold storage provider, Kool4Logistics, guaranteed for the first 15 years of the tenancy by their UK parent company, Oakland International. A tenant only option agreement for an additional 10 year lease extension will also be in effect.

The state of the art cold storage facility was constructed in 2018 and extends to 2,675 sqm (28,793 sq ft). Full planning permission is in place for an additional 1,867 sqm (20,099 sq ft) which is due for completion in October 2019. The original facility and the extension which extends to a total of 4,422 sqm (48,842 sq ft) is what constitutes Phase 1 initial offering.

Kool4logistics is in advanced discussions for the construction of an additional 32,800 sq ft (SPP). The additional space known as “Phase 2” is earmarked for completion by August 2020. Upon completion, a new co-terminus lease will be established for the remainder of the term for Phase 1.

Bids will be requested for the entire lot at a guide of €12m exc VAT. Bidders will be requested to proportion funds into allocation to Phase 1 payment (31st July) and Phase 2 payment (August 2020).

David Scully, head of industrial and logistics in Dublin said:

“We are delighted to work with Oakland International on this new exciting project which will likely attract significant interest from both local and international investors alike. Standard cold storage facilities are essentially large temperature controlled rooms built within warehouses. What sets Oakland International’s facility apart is everything within the four walls of the warehouse is temperature controlled. From the floor all the way to the 12m height ceiling can be utilised for cold storage.”

“Investors will have the opportunity to secure the facility by way of sale and leaseback (Phase 1) and a forward fund of an additional 32,800 sq ft (Phase 2). Phase 1 is due for completion in October 2019 however the executed lease will commence upon the closing of the sale. Phase 1 will generate an income of €501,143 per annum (€10.25 per sq ft per annum) for investors. Upon completion of Phase 2 in August 2020 the rent roll will increase to €837,343 per annum (€10.25per sq ft per annum). The property is being offered on the basis of Sale and Leaseback via a Private Treaty process. The guide price of excess €12,000,000 reflects a 6.43% NIY after standard costs are deducted.”