A STRONG, income- earning investment with huge profile at Cork city’s traffic pivot point, the Kinsale Road flyover, has come to market, with a €2.2m price guide.
Listed this week with Cohalan Downing are four retail/industrial units at the junction of the old Kinsale Road and what’s known locally as the Magic Roundabout — a five-arm junction with the N40 flyover.
The investment has a current rent roll of €221,000 a year, and major plc company HSS Hire holds leases on two of the four units, with seven years left to run and deemed a very strong covenant.
85,000 vehicles pass daily, while the immediate hinterland has a broad and evolving mix of occupants, including Smyths Toys, Barry’s Tea, Harvey Norman, and a host of DIY, interiors, and lifestyle traders. Cork City Council is inching toward opening a sizeable public park and sports amenity 100m away, diagonally across the South City Link Road, on a reclaimed former landfill. And, 250m away, the long-fallow CMP Dairies site at the junction with Tramore Road is expected to be redeveloped for retail warehousing, with the property arm of Dairygold set to lodge for planning permission this year. Earlier this year, Homestore & More opened in a phase 11 retail warehouse development by the Woodies site, opposite CMP.
Into this changing backdrop and city suburb, agents Brian Olden and Rob Coughlan of Cohalan Downing Associates bring four units at the long-established Kinsale Road Industrial Estate, to the market for private consortium owners, with current tenants unaffected by the investment sale.
At the present rent roll of €221,000, the €2.2m guide equates to a net initial yield of 9.6%. The four units, three terraced and one detached, have a footprint of 15,600 sq ft with additional mezzanine space, all on a site of 1.19 acres.
The detached unit is leased by Egan Electrical Equipment (Ireland) Ltd on a 21- year term from May 2004, at a passing rent of €50,000 pa with upward-only rent reviews and seven years remaining unexpired.
Two of the terraced units are held under lease to HSS Hire Service Group PLC, on similar terms at a current rent of €141,000 pa. HSS has sub-let to Northgate Vehicle Hire and Johnstone’s Decorating Centre, but remains responsible for the original lease. One other unit is leased by Leeside Interiors Ltd t/a Cork Tile & Wood Flooring on a 10-year lease from 2016 at €30,000 pa, due to rise to €35,000 in May 2018.
“While the properties enjoy exceptional covenant strength, particularly with HSS as a PLC, the offering is further enhanced by its unrivalled profile location which occupies an exceptional position directly off the Kinsale Road Roundabout 3km south of the city centre,” they say.
Cohalan Downing Associates 021-4277717
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