Tenancy
The property will be let to Eason Limited by way of Sale & Leaseback on a new 25-year Full Repairing and Insuring lease at an annual rent of €1,341,500 subject to 5 yearly market rent reviews. The lessee will retain the right to all licence income currently derived from the property to include phone mast income. There will be a tenant break option in year 10, subject to 6 months-notice. The vendor is willing to consider minor alterations to the lease structure subject to pricing and any such proposals should be expressly detailed in any offer made.
Covenant
Eason is Ireland's leading book, stationery, news and magazine retailer with a portfolio of 60 stores nationwide and employing approximately 800 people. Eason Limited had a turnover of €109m in the year ending January 2018, with a profit after tax and restructuring costs (€3.3m) of €0.7m. The profit after tax for the year ending January 2019 is expected to be approximately €3m bringing the balance sheet value to c.€6m.
Full accounts for 2018 and draft accounts for 2019 are available on request.
A parent company guarantee from Eason Operations Limited (EOL) will be provided for 10 years. This is a newly incorporated parent which has zero borrowings and holds €17m cash on its balance sheet in addition to £2.5m GBP of unencumbered property in Northern Ireland. This guarantee will be limited in terms of financial exposure to 3 years’ rent. Full draft accounts for EOL are available on request.