THE chance to have Apple as a tenant in a Cork investment property sale will catch the eye and engage the interest of strong investors nationwide — as will the promised 10.65% net initial yield on offer in the case of two building sales valued at €7.25 million.
Listed this week for a private investor vendor are two buildings, “with long term secure income from two superb tenant covenants” in the Cork Business & Technology Park, on the Model Farm Road, in Cork’s western suburbs. One is let to Apple Operations Europe, and the other large one is let to Trend Micro, with a weighted average unexpired lease term (WAULT) of over 3.92 years term certain.
The adjacent, modern business buildings are being marketed by David McCarthy and Margaret Kelleher of Lisney, by private treaty, in one or two lots.
Overall passing rent is currently €808,000 pa, set to increase to €861,000 pa over the next four years.
Occupying Lot 1, the 24,755 sq ft, mainly single storey technology Unit 8 at the Cork Business & Technology Park is Apple Operations Europe, a subsidiary of Apple Inc and it’s held on a lease with six years to expiry, guiding €2.8m.
Apple Inc has been based in Cork for more than 35 years, employs 5,000 in Cork and is currently expanding its 400,000 sq ft Hollyhill EMEA HQ, with cranes visible there up on the city skyline, and it also occupies a significant office building at Half Moon Street/Lavitts Quay in the city centre.
Apple pay a current rent of €341,964, due to rise to €359,062 next July, and in other increments up to €395,866 from 2021. The lease runs to 2023, with break options in 2019 and 2021. Recently upgraded to a high standard, Unit 8 has a mix of open plan offices, meeting and conference rooms, canteen and breakout rooms.
Also on offer at €4.45m, as Lot 2, is Unit 14, a detached, part two-storey/part three-storey business and technology unit of c 36,340 sq ft. It is fully let to Trend Micro (EMEA) Ltd under two separate leases with nine years to expiry on both.
Incorporated in 2002, Trend Micro has had a Cork/Irish presence for 14 years and is a global leader in internet content security software and cloud computing security with a focus on data security, virtualisation, and endpoint protection.
Trend Micro (EMEA) Ltd pays a current rent of €466,037 pa for the building, on two leases running to 2026, with a break option in 2022.
Lisney’s David McCarthy quotes a combined €7.25m asking price for both lots, noting this “this represents €119 psf, which is well below construction/replacement cost and a net initial yield of 10.65% after allowing for standard acquisition costs.”
The units are within the accessible, suburban long-established 79-acre park on the Model Farm Road, near CIT, UCC and the Rubicon Centre and other occupiers within the park include Boston Scientific, Alcon, Abtran and Pilz.
According to Lisney director Margaret Kelleher, “demand for well-located commercial investment properties continues to be buoyant, in particular in the office sector, and there will be strong demand for this property. This is an excellent opportunity to acquire a substantial office investment with secure rental income from quality tenants.”
And, according to David McCarthy, “occupational markets for office accommodation have improved in recent times with transactional levels running at, or above, long-term averages with rental growth having come back to the market strongly.”
Details: Lisney 021-4275079
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