A deal you can bank on

Savills are bringing a prime retail investment premises at Main Street Ballincollig (presently tenanted by Bank of Ireland) to the market this week and are pitching the building with streetfront loggia as an investment buy.

A modern building, it was built in 2008 by O’Flynn Construction as part of a new town centre sceme in Ballincollig. The two-storey property, which stands at the entrance to the town proper and has a high profile position on Main Street, is let to the Bank of Ireland group on a 25-year lease at a passing rent of €322,000 per annum. The premises hits the market with a guide price of €440,000 and has a retail element at ground floor with good passing footfall and high visibility, while on the upper floor has open plan, cellular offices with communications room, staff room and other office space. The ground floor includes back office elements and the layout is entirely flexible, says Niall Guerin of Savills.

The lease agreement with Bank of Ireland is on a 25 year basis from April 2006 and the passing rent has 15% uplifts every five years. Extending to a total internal floor area of 547.4 sq m (5,892 sq ft) and with standard purchaser’s costs of 4.46% deducted, the income yield would be 7% rising to 8.1% in 2016, says Niall Guerin, with an expected yield of 9.3% in 2021 and 10.66% in 2026.