Located in Cork’s Carrigtwohill IDA Business Park is an investment property with an international flavour you don’t normally expect in the southern capital’s commercial market.
The unit is likely to prove attractive as it is let to TRS Global Services Ireland Ltd on a 20-year fully repairing and insuring lease from June 2007, leaving 10 years on the current contract.
It is an unusual proposition in that the rent is being paid not in euro, but in dollars. The detached manufacturing facility extends to approximately 5,080sq m with adjacent occupiers including GE Healthcare, Stryker and Gilead Sciences. The current occupier is a full-service provider of repairs and services for engine owners, specialising in stationary component repairs.
It is especially involved in component repair and manufacturing processes for a range of industrial, aero-derivative and aircraft gas turbines. This particular property listing is being offered by Cork’s newly minted CBRE office which is headed by its experienced managing director Brian Edwards. On this investment Mr Edwards said it:
“It’s an excellent opportunity to acquire a high-yielding investment in a prime commercial location.”
The current rent being paid is $413,000 per annum which equates to about €367,000 as of June 7.
The property also benefits from a historical contract with five-year upward-only rent reviews, a now scarce and highly sought after commodity in the property investment community.
The 2017 review has been conducted so there is one review remaining on the term. Mr Edwards says that the remaining lease term “should ensure the property attracts strong investor interest”.
He also feels the rent being in dollars may attract a different clientele to normal. It is an obvious attraction for those with connections to the US, or anyone with euro to invest but transacting their business mainly in dollars, and looking for a foothold in the Irish market.
The property is guiding at €2.6m reflecting an attractive net initial yield of 13.50%.
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