French investor Iroko Zen has returned to the acquisitions trail, paying €24.5 million for two car showroom investments in Swords, Co Dublin. The off-market sale and leaseback deal for Bright Motor Campus and Unit 4 at Airside Motorpark represents Iroko’s eleventh investment in the Irish property market.
Bright Motor Campus comprises four car-showroom buildings extending to a combined footprint of 5,103sq m (54,930sq ft). Bright Motor Group Ltd will take a new 20-year full repairing and insuring (FRI) lease, with a tenant-only break option in year 15. The passing rent is €1,502,000 a year. Completed in 2023, the Bright Motor Campus is a best-in-class motor showrooms facility. Its buildings are A rated for energy consumption, and as such are in keeping with both the tenants and Iroko’s corporate sustainability strategies. Bright Motor Campus provides sales and servicing for several car brands, including Ford Commercial, VW Commercial and Cupra.
Unit 4, Airside Motorpark comprises 2,787sq m (30,000sq ft) of accommodation, together with surface and basement parking. The property is also let to Bright Motor Group Ltd on a new 20-year FRI lease, including a tenant-only break option at the end of year 15. The passing rent is €458,000 a year. Unit 4 provides sales and servicing for Hyundai.
Together, the two assets generate a total passing rent of €1.96 million a year, with both leases subject to CPI-linked rent reviews every five years.
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Bright Motor Campus and Unit 4, Airside Motorpark are in a well-established commercial hub in Swords. Positioned immediately adjacent to Airside Retail Park, the two properties also sit near the M1 motorway, Dublin Airport, Dublin Port Tunnel and the city centre.
Michele McGarry of Colliers advised Iroko on the transaction while KPMG Corporate Finance acted for Bright Motor Group.
Ms McGarry said: “This transaction highlights the continued demand for secure, long-term income-producing assets in the Irish market, particularly those underpinned by strong covenants, with long unexpired terms. The motor retail sector remains resilient, and this transaction reflects growing interest from international capital seeking stable, well-located opportunities.”
Henry Flanagan, finance director at Bright Motor Group, said: “This transaction is consistent with our strategy of growing Bright Motor Group as a multi-franchise operation with some of the most modern showroom and workshop facilities in Europe. The cash generated will allow us to make further strategic acquisitions and opens up opportunities to fund property-backed investments throughout the country”.
