Frankfield warehouse a sound buy

A sound warehouse investment at Cork City’s well-established Ballycurreen Industrial Estate, Frankfield, near Musgraves, is for sale as an investment, offering a potential return of 9.6% per annum.

Agent Edward Hanafin, of Lisney, is selling a 30,000 sq ft brick-fronted building, above the Kinsale Road, Cork, for €21 per square foot: he says it is good value, given that cost of replacement is closer to €100 psf, and the location is a banker.

It’s set near the Kinsale Road roundabout and ring road, 3.5 kms south of Cork City centre, in an area of consolidated warehouse/retail, which also has wholesale distribution and light industrial uses.

The single-storey, 30,336 sq ft building, which includes an office, has just been let on a new, 10-year lease, from August, 2015, at a rent of €65,000 pa, with a review after year five. It has an eaves height of 6m.

At €650,000, there’s a net initial yield of 9.6 % and “this is a high-yielding investment opportunity, with 10 years’ secure income, and potential for rental growth in year five,” says Mr Hanafin, who is selling by tender by November 20.

Nearby occupiers include Musgraves Cash & Carry, Barry & Fitzwilliam and Avoncourt Packaging.

• Meanwhile, in an adjoining business park, Conor Smith, of Casey and Kingston, is seeking €197,500 for a modern warehouse/workshop, unit H3 at the South Link Business Park.

With 3,450 sq ft of warehouse/light industrial space, including a two-storey office block to the front, it equates to €57 per square foot at ground, still about 50% of replacement value. Mr Smith recently concluded the sale of the adjacent H2 unit, above its €150,000 asking price.

New to the letting market in the same Kinsale Road roundabout vicinity, David McCarthy and Mark Kennedy, of Lisney, are offering a showroom/workshop to lease. The building, previously occupied by Sliderobes, is an end-terrace commercial premises within the established Kinsale Road Business Park, just off the Link Road/Kinsale Road Roundabout.

It is owned separately to the 4.5-acre Kinsale Road Business Park, which was sold a year ago by Lisney, to Mullingar-based Bennett Property, for €3.5m.

The ground-floor unit has 3,400 sq ft, with mezzanine of 1,500 sq ft, and a rent of €35,000 pa.

Clsoe-by, the Kerry Group site is still for sale with Savills,witha price drop to c €450,000 for three acres. It’s close to a newly developed municipal park

Details: Lisney 021-4275079, Casey & Kingston 021-4271127