Derry Sainsbury’s site put up for sale

Sainsbury's. (1701PG30)
Sainsbury's. (1701PG30)

One of Derry’s biggest supermarket developments is up for sale for just under £20 million.

The site on Strand Road, which is owned by the McGinnis Group, is leased to Sainsbury’s until 2024 at an annual rent of £1.1 million.

The McGinnis Group - whose registered name is Monnaboy Ltd - is looking for £19.4 million for the Strand Road store’s freehold.

An adjoining 0.65 acre development site is also included in any deal.

The selling agent, Lisney, said it expects interest from institutional investors and property firms.

Lisney investment director, Andrew Marsden, said food stores continue to be the most buoyant in the Northern Ireland market.

“The main food retailers continue to compete for market share through the acquisition of new sites and the extension and redevelopment of existing stores.

“As a result, rents on food stores in Northern Ireland have increased over the last five year.”

Meanwhile, another local property firm has reported a loss of £1.4 million for 2011 as difficulties in the development sector continue.

Braidwater Holdings, which has its registered office in Eglinton, had shown a profit of £317,000 in 2010. Turnover in 2011 was £18.7m., up from £10.6m. in 2010, although expenses also increased.

The directors said it was a disappointing result in “a very challenging year”. They added that the position of the group was “in keeping with the difficulties being experienced by many property developers, investors and competitors with the construction industry”.

The firm’s liabilities outweigh its assets by more than £19m. and it has Ulster Bank borrowings of £33m. which are repayable on demand.

The company said it has been in “constructive negotiations” with the bank and is confident that its loan facilities will be renewed.

Braidwater has been operating since 2001 and delivered a series of commercial and residential projects in the Derry area. The firm’s focus in recent years has been in the north west of England.