Building on 10-year lease to Logitech at Cork Airport Business Park up for sale

A single building let to Logitech at Cork Airport Business Park is for sale for €2.4 million, a year after the separate sale of five investment buildings there to Norwegian trust Adel Crest, for €15.1 million.

Coming to market with agents Savills is Building 3400, with just under 20,000 sq ft and let on a 10-year lease from 2012 to long-established IT firm Logitech, who have occupied units in several Cork business parks in recent years (see separate story on office deals above).

Niall Guerin of Savills describes the offer as a modern third-generation office and investment opportunity, and says the current rent is €146,904 pa.

Occupiers are Logitech Ireland Services Ltd, on a 10-year FRI lease from 2012, with five-yearly open market rent reviews, and with a break option at the expiry of 2019.

“There’s potential for rental uplift at the next review, in September 2017,” according to Mr Guerin as he says “both the lot size and location have been in demand in the last 12 months.”

There have been sales of a number of buildings in the park, including the five buildings in Phase 2 which were acquired by Adel Crest in early 2014.

The same family trust also paid c €3m for the Bank of Ireland investment building in spring of 2014. At the €2.4m guide (plus VAT) for Building 3400, there’s an equivalent yield of 7.5%, and at a capital value of €122 psf “it provides an excellent value investment opportunity,” according to Isobel O’Regan of Savills.

Details: Savills, 021-4271371