Major French company pay over €20m for Galway city building as plans outlined

A major French company have forked out over €20 million for a Galway city building as plans are outlined for the takeover.

Citypoint in Galway went on the market earlier this month at a guide price of €21.5 million and is understood to have been sold close to this number to a French investment fund.

Vendors Aviva acquired the property when taking over Friends First in Ireland, who bought it in 2018 for around €22m and at the time it generated an annual €1.5m rent roll.

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Put back on the market in February 2024, it was seen as a boon for a potential buyer’s investment profile with the Prospect Hill building promising a ‘solid high income return’.

The enormous property, half of which houses TX Maxx, spans 7,432sq m (80,000sq ft) across six floors and was originally developed in 2007.

Citypoint comes for sale fully occupied with a weighted average unexpired lease term of 6.6 years to the nearest break option and about 8.7 years to lease expiry.

TK Maxx occupies 3,716sq m (40,000sq ft) of retail space, while the office accommodation of 1,951sq m (21,000sq ft) is home to the European headquarters of US tech company Mathworks, which has been in occupation since late 2016 and expanded into the reminder of the office space in 2022.

The investment also includes a gym operator trading as Snap Fitness at part ground floor and basement levels, while the upper floors from the third to fifth floor level is operated by the Western Hotel as an aparthotel, with a total of 17 self-catering units with access to external terraces offering impressive views over the city and Galway Bay.

The property also generates a total passing rent of about €1.87 million annually.

Commenting on the sale, joint agents Sarah Winters of TWM and Brendan Delaney of Savills said: “It is rare for an opportunity like this to come to the market in Galway with a profile and lot size that will appeal to both national and international investors looking for a solid high-income return. An added incentive for investors is the fact that the purchase price is considerably lower than the reinstatement cost.”

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