DUBLIN and overseas investors currently picking up Cork property are expected to be to the fore in the sale of a high-quality office investment, let to BNY (Bank of New York) Mellon, which carries a €7m price guide.
Fresh to market this week with Savills is Unit 30 at the Cork Airport Business Park.
It earns €341,000 at present, under a 20-year lease from 2006, and was built in the second phase of the Airport Park, which has occupiers such as Amazon, Logitech, and Red Hat.
Being landlord to BYN Mellon possibly carries some kudos for any new investor owners, and of extra note is the fact Unit 30’s ground floor, of some 24,000 sq ft, is vacant. This is is the largest floor size available at the park, it’s in the newer second phase, and vacancy rates overall are now in low, single-digit percentages.
Guiding at €7m, Niall Guerin and Isobel O’Regan of Savills Cork say the detached, modern, two-storey, third-generation office building is of architectural design.
It has well-kept office accommodation and presents as an attractive investment opportunity, on a well-defined site in the well-serviced park, with 248 car spaces.
There’s over 48,000 sq ft, the first floor is let to BNY Mellon under a 20 years and one month lease from July 2006 with five-year rent reviews. The ground floor is vacant and so “represents a unique opportunity for investors to add significant rental uplift once leased.
Alternatively, it’s a chance for an owner occupier to locate in the ground floor with an income stream from the existing tenant on the first floor,” say the agents.
They are selling by private treaty and at €7m (plus Vat), it gives a capital value of €145 psf, an equivalent yield of 8.97% and reversionary yield of 9.98%, which “provides an excellent value opportunity”, says Mr Guerin.
The agents expect players to come from local and national profiles, as well as possible overseas buyers or funds.
Savills’ Ms O’Regan last month negotiated the €45.6m investment sale of the Capitol Cork office/retail property for JCD, to German fund Real I.S., prompting Goodbody analyst Colm Lauder to observe that “recent transactional evidence is beginning to show that international investor activity is now looking beyond Dublin for new opportunities”.
A similar sized Cork investment to that €7m offer at the Cork Airport Business Park saw a low-profile Dublin-based group emerge as c €8m buyers of two office investments (one let to Apple) at the Business and Technology Park via Lisney, showing a return of 9%-9.5%.
The Airport Business Park is 5km south of the city centre, is served by two airport hotels, and occupiers include Amazon, Red Hat, Logitech, Marriott, Centrica, and Permanent TSB.
“Both the lot size and location are in strong demand and we are expecting competitive interest from both local, national, and international investors and owner occupiers,” says Mr Guerin.
Meanwhile, also offered this week in lots, via Savills, is Mallow Business Park, including Blackwater House, and almost seven acres of land by the N20, just at the access ramp on the Cork City side of the town.
Developed initially by local man John Barry of Castlelands Construction, there’s a current rental income set to increase €241,189 per annum from Nov 2017.
Blackwater House is a modern, high-spec office building of 28,880 sq ft, on three acres.
Guide for the entire site is €1.85m. Mallow Primary Healthcare Centre does not form part of this transaction and is in third-party ownership, says Chris O’Callaghan of Savills.
He pitches the setting as being at “the crossroads of Munster”, given Mallow’s access arms to Cork city, Limerick, Fermoy, and Killarney, adding that it is served by a rail link, while plans to upgrade the N20 to dual carriageway as part of the Cork/Limerick motorway “will in turn dramatically reduce travelling time between Cork/Mallow and Limerick”, notes Mr
Details: Savills 021-4271371
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