€2m sale for Maltings

A MODERN mixed-use investment building in Cork’s Carrigaline has been sold for around €2 million, acquired by an Irish investor via a competitive bid process.

€2m sale for Maltings

The Maltings building on Main Street, Carrigaline, is let to Ulster Bank as well as the Department of Social Protection with a current income of €357,000 pa, with five overhead apartments.

Ulster Bank Ireland Ltd pays the lion’s share of the rent for 5,000 sq ft over two levels, at €210,000 pa, but it is on a lease of nine years and 11 months from September 2007; that anticipated 2017 change in rent was factored into the longer-term value of the building by the bidders.

“The purchaser is likely to obtain a net initial yield in the region of 16% and this reflects that the lease to Ulster Bank is due to expire in 2017, and the rent of €210,000 pa that Ulster Bank are currently paying is well above current market rental levels,” according to Lisney. The second rear 3,400 sq ft section of the property is let to the OPW/Commissioners of Public Works on a 20 years FRI lease from 2008, at an annual rent of €103,940 pa with five yearly upwards-only rent reviews to market rent. There’s a tenant break option in 2020.

In addition there are five overhead two-bed apartments on three upper levels of the complex, developed around a courtyard in a conversion of a former mill building with new retail build.

Selling agents Edward Hanafin and Margaret Kelleher of Lisney said they had a guide of €2.1m, and the deal was to close out this week, likely to be making close to €2m. It went to best bids as interest hardened among six strong parties.

There was broad interest, and bidders from the UK and Ireland, as well as more locally.

The sale was instructed by receivers Kieran Wallace and David Swinburne of KPMG for developers Hillback who completed it in 2007 and there’s 100% occupancy.

Location is central in Carrigaline in a top trading and retail/commercial setting by neighbouring occupiers AIB, Paddy Power, Boyle Sports and Carrigaline Shopping Centre, which is anchored by Barry Collin’s SuperValu.

Details: Lisney 021-4275079

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