Buildings sell in heart of Cork's business district
Currently producing an income of just over €270k per annum, the property was guided at €2.75 million by Margaret Kelleher of Lisney.
Market sources indicate that it achieved a price in excess of €3m reflecting a net initial yield of around 8.6%.
The building, which is home to Lisney’s own Cork office, contains one vacant floor that is currently available to let and an investment is planned in the building as leases lapse and floors become available, realising a higher yield, it’s projected, on the existing offering. Lisney could not comment on the sale but did confirm that there was active interest in the property which culminated in a best bids process.
The unique property comes with 85 metres of frontage along South Mall and extends to a net floor area of around 1,614 sq m.
A roster of top-end tenants explains the strong interest. PWC occupies the first, second and fourth floors with Royal and Sun Alliance on the fifth floor and selling agent Lisney located in the ground floor.
Added income from a roof mast and a vacant floor give a potential income stream of around €315k per annum with leases carrying a weighted average unexpired lease term (WAULT) of four years.
Close by at No1 Lapp’s Quay/ 16 Parnell Place, was being offered via expressions of interest on behalf of Cork City Council. This property, which formerly housed a branch of TSB Bank, was guided at €950,000.
It is understood this substantial 707 sq m building is in the final stages of negotiation. Offers are now in excess of the guide, and an announcement is expected shortly.
The same agents last had it for sale in early 2013, guiding at €1.2m and sold it later that year to Cork City Council for an unconfirmed sum, thought to be between €800,000 and €850,000. The building, home to the Cork Savings Bank, was funded by the people of Cork and built in 1839.
It is also believed that the terraced Georgian buildings at 31, 32 and 33 South Terrace, Cork have now gone sale agreed. The properties, two of which were previously owned by Cork developer Joe O’Donovan, were guided at €1m by Powell Properties.
In the early 1800s, this block of red-brick buildings was owned by noted architect Sir Thomas Deane, and was once described as ‘one of Cork’s most significant Georgian terraces’. The purchaser is believed to be an international investor, who has looked at other property in the Cork area in the past.
It is understood that the sale price for the buildings, which come with a 24-space car park to the rear, is in excess of €1.1m. the new owners may be considering boutique hotel use for all three listed, properties, with a modern extension to the rear.
Details: lisney.ie; powellproperty.ie
