TALK about timing coming to market!
Sidling up to the sprawling Debenhams department store in the heart of Cork city and which is currently up for sale and expected to make over €70 million for vendors the Roche family is 38, 39 & 40 Mayor Street, an adjoining building with current rental income, and possible future development scope.
As Colliers market the former Roches Stores/Debenhams store to funds and REITS, with sources saying there’s a €70/75 million price expectation, there’s a 5% yield on offer.
Colliers’ sales spiel in a data room marketed as ‘Projectgrouse’ for the Roche family suggests there’s further development scope at upper, rear levels at the Debenhams property along and off Maylor Street, where Debenhams have 120 metres of frontage, as well as 45 metres on St Patrick’s Street under the iconic green copper dome (see separate story p19).
Colliers suggest outline plans have been drawn up for three ‘MSU’ retail boxes, and a 220-bed aparthotel in the airspace above a portion of that property’s 1.32 acre/60,000 sq ft ground floor footprint (the investment sale doesn’t include the SuperValu supermarket element or the multi-storey carpark.
Again this impressively-sized retail investment, billed a world-class department store, is this 14,300 sq ft property, let to three tenants, and with a combined income of €126,000 pa in total.
Listed with agents Rob Coughlan and Steven Denehan of Cohalan Downing Associates, Nos 38-40 Maylor Street comes with a €1.5 m guide price, and apart from the €126k in rental income there’s the chance of part or total redevelopment as the tenants have signed deeds of renunciation if required.
Under the current sales terms, their tenancies may be unaffected, say Cohalan Downing Associates.
One of the larger occupiers is Welch Sports, at 38 and the rear of 39, at a rent of €55,00 pa on a new August 2017 four-year, nine month lease, with tenant break option at year two on six months notice.
Similar terms apply on another August 2017 lease of the front of No 39 and No 40, to Write Away, who pay an annual rent of €58,000.
There’s a further €13,000 pa in income from the occupier of the upper floors of 39/40, described as a private tenant, on a standard residential tenancy.
The investment/development opportunity is to go for sale by tender by November 9, so time is tight for those considering a possible swoop on Debenhams, and on this adjacent ‘small fry’ which abuts Debenhams’ yard.
Also possibly with an interest will be Smyths Toys on the east side of Nos 38-40, with a very large city centre store. The property has 80’ frontage to Maylor Street and 60’ frontage to Merchant Street, a cul de sac by the entrance to the 700-space Merchants Quay multi-storey car park off Parnell Place.
Other established and nearby neighbouring occupiers around Maylor Street (which connects St Patrick’s Street to the evolving Parnell Place CBD quarter and bus station) include Brown Thomas, Hickeys, Intersport Elverys and Warren Allen Cafe.
“The property would also be extremely well suited as a future infill development opportunity, given its prime location and favourable site area of 0.2 of an acre,” say CDA.
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