It has an existing income stream of €857,500 pa, asset management scope to boost rents to over €1m, and a further, considerable office development site.
The property mix on 10.5 acres has strong tenants, Abtran and RCI, in the current buildings, totalling 97,500sq ft, with a weighted average unexpired lease term (WAULT) of over 6.8 years, and there’s a vacant unit of 11,200sq ft.
Full planning has been granted to double the scale of office accommodation to 200,000sq ft, on the site at Bessboro Road, off the Skehard Road. It’s close to Mahon’s existing office parks, where an office accommodation tally is now heading towards a remarkable one million square feet of offices, in completed and planned developments.
There’s between 2,500 and 3,000 office jobs already now in Mahon, in the space of less than a decade of new development post-Mahon Point.
Now, as Mahon’s office development continues to grow, and as employers warn of the shortage of living accommodation for new foreign direct investment employees in the city and suburbs, another developer, John Cleary of JCD in the past week indicated his hope to get zoning changes for his City Gate Plaza site for 280,000 sq ft of offices, with construction due on site this year. It’s now been referred to a special City Council planning sub-committee.
Mr Cleary seeks alterations to the City Development Plan to permit two apartment blocks for 220 apartments to replace an office element at that former Ma/Com site.
The location is akin to the mix of offices, retail and residential evident in Dublin’s Sandyford/Beacon Quarter and Central Park Leopardstown, John Cleary told the Irish Examiner this week (see separate JCD story p19).
Also on the residential front in Mahon, McCarthy Development last month were allowed an extension of planning for their 430-unit Jacobs Island development, where about 350 houses, duplexes and apartments have already been delivered.
JCD and Cork City Council, among other stakeholders, are currently looking at proposals to ease some of the Mahon’s peak-time traffic congestion.
Meanwhile, selling agents for Blackrock Business Park are Margaret Kelleher and David McCarthy of Lisney, Cork selling for whom they say is a private Cork investor via private treaty.
They guide at €11.2m and describe it as “a prime office investment property, with long-term secure income from two existing tenants and further development potential.”
The existing single-storey office building is in three main divisions: Abtran (who’ve had Irish Water among their clients) occupy 65,800 sq ft on a lease with 13 years to expiry, and another call centre RCI (Ireland) Ltd has 20,500 sq ft guaranteed by Wyndham Holdings, with 10 years left to run.
Estimated rental value if fully occupied would be €1.05m pa. Income equates to a net initial yield of 7% , rising to 8.75% when a tenant is secured for the vacant 11,200sq ft.
There’s 700 car parking spaces on the c 10-acres site.
The guide price equates to €115 psf for the built stock.
: Lisney 021-4275079