Fresh to market this week, with agents Niall Guerin and Isobel O’Regan, of Savills Cork, along with Kevin McMahon, of Savills Investments in Dublin, is the Bank of Ireland branch on Main Street, Ballincollig.
It forms a key profile part of the redeveloped Murphy Barracks site in the booming satellite town, which has an exceptionally strong IT employment base, and key retailers include Dunnes, Tesco, SuperValu, Aldi (2 stores) and Lidl. A new McDonalds drive-thru opened nearby in recent months
Savills price the 5,700 sq ft, two-storey bank branch at €4.9m, and, at its current rent of €320,000, it shows a yield of 6.3%.
However, on five-year reviews fixed at 15% increase (no break options, either), that’s due to go to €370,300 in July, 2016, €425,845 in July, 2021, and €489,721 in July, 2026. “It’s a well-located bank investment with secure rent guaranteed for another 16 years, and the tenant is not affected by the investment sale,” says Mr Guerin.
The modern building, which forms part of the street frontage of the Ballincollig Town Centre development done by O’Flynn Construction, is in a central position on Main Street and has retail banking at ground floor, and cellular offices at ground and first floor.
Based on that price of €4.9m, and after standard purchasers’ costs of 4.46%, the income yield on purchase will be 6.3%, rising to 7.23% in 2016, 8.3% in 2021, and 9.57% in 2026, Savills estimate.
“The property, which is let to a secure tenant, represents a superb opportunity to achieve very attractive, long-term returns relative to deposit rates,” say Savills, noting the proximity of the next fixed rental uplift, in July, 2016, due to boost income yield to 7.23%, “which further enhances the attractiveness of the investment”.
Interest from a wide cross-section of investors is guaranteed.
Details: Savills, 021-4271371