History meets the future on South Mall

CORK city’s South Mall, the traditional financial heartland of the southern capital, has sprung back to life, with occupancy increases and new-builds in the mix.

The welcome movement comes after fears for its future over the past decade, given the preponderance of 19th century buildings at a time of a drive to modern, third-generation spaces and edge-of-city development.

Behind much of the new energy is John Cleary Developments, who have yet another South Mall acquisition on the cards, and who are currently building 45,000 sq ft of new Gold LEED offices behind 85 South Mall, on a carefully assembled site for 450 new FDI jobs. Builders, Hegarty, are on-site (with excavation work for basement parking commenced). The slogan for the development is ‘where history meets the future’.

And JCD are also upgrading a 1970s office block at 89/90 South Mall: they’ve been involved, too, in a swift refurbishment of a corner office/cafe building at the junction of South Mall and Parliament Street, picked up at an Allsop auction, and have yet another trick up their sleeves at a significant South Mall property, also.

Along the same Mall business boulevard strip, the Dalata Hotel Group are set to complete a €20m hotel investment, off South Mall and Parnell Place/Beasley Street, by late 2018, and the historic Imperial Hotel continues to steadily upgrade and invest.

The past six months, meanwhile, has seen several office relocations along South Mall, including the arrival of Republic of Work IT start-up space at 12 South Mall.

Now, into the increased pace of recovery, pick-up and reimagining comes a traditional office investment offer, via agents, Lisney, whose own Cork offices are, appropriately, at 1 South Mall.

They are selling what they term a prime office investment building, at 45 South Mall, and which is let in its entirety to Cantor Fitzgerald Ireland Ltd, on upward only terms, and with nine more years to run on a lease.

It’s a four-storey, terraced building of 2,086 sq ft, at the Grand Parade end, facing Electric.

The property is currently let to global investment and financial services company, Cantor Fitzgerald Ireland, at a current rent of €44,000 pa, on a 25-year lease from August, 2001, with five-yearly upwards-only rent reviews, and with the tenant responsible on an internal repairing-and-insuring basis.

Established in 1945 and based in New York, Cantor Fitzgerald has 60 offices in 25 countries, employing c 10,000. Its Irish divison has offices in Cork, Limerick, and Dublin.

Margaret Kelleher and Mark Kennedy, of Lisney Cork, price it at at €600,000, which reflects a NIY (net initial yield) of 6.7%.

“We expect strong interest in the compact investment, given quality covenant, nine-years terms certain to lease expiry and upwards-only rent review clause, being attractive elements of this investment,” says Ms Kelleher.

Last year, the four-storey, 5,000 sq ft, No 50 South Mall was bought off-market and vacant for an undisclosed €600/700,000, by estate agency, Jeremy Murphy Associates, for their own office use, with upper floors since let out.

Other investors on this stretch of the South Mall include Roy Keane and Michael Fassbender.

DETAILS: Lisney, 021-4275079



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