Property investment fund Green Reit is eyeing the soon-to-be gem of the Cork office market having entered exclusive negotiations to acquire One Albert Quay.
The €50m Grade A office block in Cork city centre will be the largest office block constructed in the second city once complete later this year. PricewaterhouseCooper (PwC) and security systems company Tyco have agreed to take up much of the office development which has capacity for up to 1,700 people.
Although Green has said there is no guarantee of a deal, a positive outcome would mark somewhat of a watershed for Cork commercial property and represent a significant endorsement of the work done by developer John Clery to bring the project to fruition and attract long-term occupancy contracts from the likes of PwC and Tyco.
The potential acquisition would be the real estate investment trust’s first such move into an office market outside the capital and complement its existing portfolio which includes the landmark George’s Quay Plaza which is home to Ulster Bank opposite the IFSC.
Construction on the 147,000sq ft Block H Central Park office development is on-going with work expected to be completed in late 2016. In its interim management statement released yesterday, Green also reported new lettings since January had secured €1.12m of contracted rent with an additional €700,000 of lettings under negotiation.
The portfolio now includes 24 properties with €55m in contacted annual rent and a valuation of €882m with the next valuation due in June.
After a opening busy period to the end of last year, the pace of acquisition has slowed but remained strong, according to Green Reit chairman Gary Kennedy.
“Following a very active period of portfolio assembly to December 2014, the period from January 1, 2015 to date has been a relatively stable period during which the focus was on continuing to drive value for shareholders through the range of asset management and development initiatives being implemented by the investment manager, combined with the continued selective acquisition of properties with strong growth potential,” said Mr Kennedy.
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