That company are also set to sell the iconic Elysian tower for over €100 million, having acquired it for c €60m, as part of a portfolio of O’Flynn Construction group assets via Nama’s ‘Project Tower’, investing €1.1bn, and with assets now being sold on profitably.
Guided at €24m and fully let, with a rent roll of €2.1m and with lead tenant VMWare, are six office buildings at the Ballincollig Office Campus, developed by O’Flynn Construction after it redeveloped the former Murphy Barracks, and rejuvenated the satellite town over a decade of mixed use,high quality development.
The buildings are predominantly new builds, and include new offices integrated into old conserved barracks square buildings, and there’s over 108,000 sq ft in all, virtually fully occupied from day one.
The sale excludes a couple of other buildings forming Barracks Square, including the HQ of O’Flynn Construction, while it includes 380 car parking spaces in the adjacent multi-storey car park.
Selling agent for the €24m investment is Peter O’Flynn, MD of Cushman & Wakefield Cork, who says: “Barrack Square Office Campus is an exclusive investment, with an impressive tenant line up, an attractive rent roll and strong prospect for future growth.”
At the €24m price tag, it indicates a strong return with a likely yield range from 7.75% to 8.25%. Interest is expected from funds, REITS, some private, high-net worth individuals, and from overseas funds who have now trained sights on blue-chip investment outside of the Dublin market, due to higher returns.
A recent example was German pension fund Real I.S’s €45.6 million purchase of the just-completed Capitol office and retail development by JCD in Cork city centre, likely to have shown a 5.5% return.
Coming into this sharp focus now is this Ballincollig investment, covering Kavanagh House, Pearse House, Yeats House, Behan House, Parnell House and Unit 3 at Emmet House, as well as the adjoining Sliced pod/kiosk restaurant and 380 spaces in the four-storey car park.
Tenants are VM Ware International Ltd, occupying c 90% of the space and responsible for almost €2m of the €2.1m rent roll, along with eSentire EU Ltd, and Sliced/Star Innovation Ltd. The 108,000 sq ft is held on a variety of leases, some from 2007, others from 2015.
“The investment market in Cork is certainly heating up,” says Cushman & Wakefield’s Peter O’Flynn, referencing the investment sale of The Capitol in the city centre. And, news of the planned sale of The Elysian as an investment via Savills and Lisney broke at the weekend, with its likely €100m value enhanced after being brought close to full rental occupancy over the past year.
It’s owned by Blackstone and managed by the O’Flynn Group, who completed it in 2008: its rent roll has not been disclosed, but is likely to be in the region of €5m pa, with some three-bed units renting at €3,000 per month, and with further commercial space as yet unoccupied.
Cushman & Wakefield 021-4275454