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Tesco pays €12 million for Roselawn Shopping Centre

{con_title} July 29 2002


Tesco has emerged as the purchaser of the Roselawn Centre at Blanchardstown, Dublin 15. The company has paid close to €12 million for the complex, in which it has a large supermarket.
DTZ Sherry FitzGerald handled the sale for the Irish Pension Fund Property Unit Trust (IPFPUT), which has owned the centre for about 12 years. About three years ago, Tesco also acquired the run down Janelle Centre in Finglas and
has since redeveloped the site. The company will inevitably shake up Roselawn to strengthen its base close to Blanchardstown Town Centre where Dunnes Stores holds sway.

Tesco holds a 20-year lease from 2000 on its original 12,858 sq m supermarket in Roselawn. This was an extension of its original lease and provided for the rent to be reviewed to 75 per cent of open market value up to 2005. From
that date, the rent was due to be reviewed to full open market rate. In 1995, Tesco paid for a 929 sq m extension of its supermarket. By 2005, IPFPUT had the right to buy back the unit and rent it to Tesco at the going rate. The price
payable would have been the investment value less the cost of the site.

Tesco’s decision to buy the centre will hardly come as a surprise given the company’s complicated involvement in it. As things stand, the centre is producing €789,185, a figure that was due to rise to over €960,000 by 2005. There are 23 long-term occupation leases, including the lease on the Tesco unit.