Tax break time limit on sale

Time may be running out for the Government’s commercial property tax breaks extended in the last budget, so demand for quality commercial property has been sustained, says Ed Hanafin of Lisney.

He’s just announced the sale of a modern office block and retail premises in Listowel, and describes it as a prime commercial investment with a Government tenant in place.

The Revenue Commissioners building at Mill Lane in Listowel town centre comprises of two-storey accommodation with the entire first floor — 9,584sq ft — in office space.

This is let to the Office of Public Works, for occupiers, the Revenue, on a 20-year lease from 2007 at a rent of €244,923 per annum with five-yearly, upward-only rent reviews and a tenant break option at the end of year 15.

The offices are finished with suspended ceilings and raised access floors and the building comes with feature courtyard and surface parking. The ground floor has three retail units, one of which is occupied. The property is being sold on behalf of joint receivers, Michael O’Regan and William O’Riordan of PWC.

Lisney quotes a sale price of €1.65m which equates to a net initial yield of just over 14%. Should the sale be completed by year’s end, a purchaser can benefit from capital gains tax relief for the next seven years of ownership.

Details: Lisney, 021-4275079