A major asset in the group’s ICAV portfolio, Southgate Shopping Centre is a vibrant mixed-use development offering substantial asset management opportunities and strong rental income potential.
We are delighted to announce the acquisition of Drogheda’s Southgate Shopping Centre, Ireland, by Star Stone Property Group and their partners for €13,200,000. This landmark purchase, completed this summer, represents the group’s largest investment to date.
Developed in the early 2000s by Phil Reilly of Shannon Homes and his business partner, Meath businessman John Stanley, Southgate is a purpose-built, mixed-use development. The scheme spans 57,350 square feet of retail space, 93,592 square feet of office space, residential apartments, and 730 car parking spaces.
Key occupiers include anchor tenant Dunnes Stores, Coca-Cola, and the HSE, alongside numerous high-quality independent retailers, food outlets, and local service providers. The office space contributes 44.5% of the rental income, with residential units accounting for 38%, and an additional €18,000 per annum from mast income.
The residential component of the scheme consists of 64 units, of which 11 were purchased by Star Stone. These spacious units, averaging 878 square feet, are presented to the market in walk-in condition.
Southgate presents substantial asset management opportunities, including increasing its rental income through the leasing of vacant units. There is also reversionary development potential to add 48 apartments subject to planning permission, along with creating new commercial space, also subject to planning, according to the selling agent.
Star Stone Group have already made several upgrades to the site, including the installation of numerous LED lights in the underground car park. Additional lighting will be replaced in the mall area and around the main entrance in the coming weeks. Landscaping and power washing around the premises are also in progress, alongside the introduction of updated signage. Additionally, a new website, www.southgateshopping.ie, has been launched, along with new social media accounts. These initiatives are part of our strategy to establish a stronger, more interactive online presence for the shopping centre.
Geographically, Southgate sits on the outskirts of Drogheda in County Meath. This is a vibrant town that has seen significant investment in both commercial and residential sectors in recent years. Situated on the M1 motorway corridor, it serves as a hub for multinational and local businesses across diverse industries. The town boasts a population of 41,000 and a catchment area of 1.7 million people within a 60km radius, 40% of whom are aged between 20 and 44.
In-line for an initial net yield of 10%, this acquisition marks a significant milestone for Star Stone Property Group, taking the capital value of its ICAV portfolio beyond €50 million and gross rental income past €5 million.
