Investment opportunity at heart of business district

Guided at €4.25 million for owners Aviva Investors, the sale of the landmark 1970s office block 89/90 South Mall is in a pivot position in Cork’s CBD.

Offered as an investment with further development potential and rental uplift hopes, it promises a net initial return of 7.6%, at current €338,000 pa rent.

The five-storey white tile-clad building was for many years known as Norwich Union House, and current tenants include KPMG with seven years left to run on a lease, as well as Fujitsu, while recent arrivals include James Riordan and Partners, and recruitment firm Stelfox.

It currently has over 5,000 sq ft vacant, and a further 7,500 sq ft is due to fall vacant later this year, so there’s scope for a refurb and new lettings.

Some investors may look at adding a sixth floor.

Rents once refurbished could be in the region of €15 psf, or €160 psm.

No 89/90 has on-site car parking with 28 car spaces with side street access to Smith Street.

It comes to market as office rents in the city “are seeing potential for increase for the first time in a significant period,” say agents Niall Guerin and Isobel O’ Regan of Savills.

Meanwhile, also on South Mall, Cork City Council with UCC and other consultants is progressing plans for an imaginative reworking of sections of an old South Mall block, at the western end and held a seminar this week with stakeholders.

Details: Savills 021-4271371