Branch investment

THIS is the year of the investment sale, according to Margaret Kelleher, director of Lisney’s Cork offices, as she bring a blue-chip bank investment to market, in an equally blue-chip setting.

She makes the claim as this investment at €2.5m shows a net initial yield of 11.2%, and will be free of Capital Gains Tax if bought this year, and held for seven years under specific, restricted terms in budget 2012. The CGT tax relief measure is due to expire at the end of 2013, thus giving investors an extra incentive.

The Lisney director is marketing the Bank of Ireland branch in Cork’s Wilton suburbs, a purpose-built standalone building on the grounds of the Wilton Shopping Centre. Owned by a private investor, it’s held on a 999-year lease (effectively freehold) from 1979 on a nominal rent.

The bank branch investment sale is instructed by joint receivers Michael Cotter and Ronan Murray of Ernst & Young, and the building is a clean investment with good income stream.

The property is sub-let at an annual rent of €292,000 to The Governor and Company of the Bank of Ireland, on a 25 year-lease from 2006.

It’s subject to five-year reviews, upwards only to market rent. Prospective purchasers will look at the quality covenant, location, and there’s a tenant break option in September 2021, exercisable with advance notice.

The property is 7,100 sq ft in all, over two split levels, with the public banking area at grade level, plus offices and meeting rooms, with further offices and staff areas below.

Other banks in the Wilton/Bishopstown area include AIB by the Bishopstown Bar, close to permanent TSB, while Ulster Bank and NIB have withdrawn from the area.

“We expect strong interest in this investment highlighting the quality covenant, strategic bank location — especially given its proximity to CUH and UCC, as well as the densely populated suburbs of Wilton and Bishopstown, all re-enforced by it being an extremely busy bank branch,” commented Ms Kelleher

Details: Lisney, 021-4275079