Guided at excess €4.75 million is Unit 7, at Eastgate Avenue, Little Island, a 21,000 sq ft stand-alone building within the O’Flynn Construction mixed-use retail, office and motors park on the fringe of Cork city.
It’s 100%, fully let to the Food Safety Promotion Board, although a portion of the ground floor is sublet by the OPW for ten years from 2016, and total rental income is €370,000 pa.
Safefood (FSPB) was one of a number of North/South bodies set up after the Good Friday Agreement, to promote awareness and knowledge of food safety and nutrition issues on an all-island basis, and it reports to the North South Ministerial Council.
At the guide of €4.75m, it indicates a net initial yield of 7.46% for the investment, or a purchase cost of €223 psf.
Unit 21 is held on under a 25-year lease from June 2001, due to expire in June 2026, giving over 9.2 years term certain, says agent Kyle Rothwell of CBRE Dublin, who notes “the Food Safety Promotion Board and the Commissioners of Public Works in Ireland provide an excellent covenant.”
(CBRE’s new, first Cork offices are imminent, though as yet unofficially unconfirmed, set to be headed by agents Denis O’Donoghue, ex-Savills Cork, and Brian Edwards, ex-Cushman & Wakefield, Cork.) Building 21 comes with 70 car parking spaces and a spec that includes air con, raised access flooring, suspended ceilings etc.
Other significant occupiers at Eastgate include Laya Healthcare, and Eli Lilly. The pharma giant’s European Shared Services and Global Global Business Solutions, and 350 employees, are housed in a 65,000 sq ft building which it bought in 2010 for c €10 million.
Lilly is running its building at capacity, and is known to have further space needs in Cork
“Given the security of the long-term income from a Government body and the good location in a well-established business park we anticipate a strong level of interest for the asset,” say CBRE.
Also on offer in EastGate is the fully-refurbished Building 6 Eastgate Avenue, earning €210,000 pa and part-let to ESB International, with rental uplift scope if fully occupied. It’s guided at €3.7m by Niall Guerin of Savills Cork, who says there are six active inquiries on it at present from Cork and Dublin investors.
Meanwhile, also set to test appetites for office investments in cities outside of Dublin, CBRE also have a Galway office building, 6 Ard Oran, at Galway’s Oranmore Business Park for sale guiding excess €8.5 million.
The 52,300 sq ft building with 99 basement parking spaces is fully let to US-based tech corporation Cisco who employ 71,000 globally, at €773,850 pa.
The €8.5 million-plus guide equates to a NIY of 8.72%, or €163 psf.
Cisco hold 6 Ard Oran on a 25 year lease from November 2007, with five-year upward-only rent reviews, with the next break option in November 2022.