High-flyer deals at Cork Airport Business Park

INVESTMENT sales at Cork Airport Business Park are lining up for take-off, and landing, with increased regularity.

High-flyer deals at Cork Airport Business Park

Two just-concluded significant deals have seen over to €15 million invested, with buyers including a private investor at circa €7m, and to Ireland and Singapore investment and asset management company, FineGrain Property who make a first play into Cork.

Those deals, at sub€7m for one 48,000 sq ft investment, and at €8.5m-plus where FineGrain are refurbing 20,000 sq ft of offices at their off-market 60,000 sq ft building purchase, are complemented by smaller deals also currently transacting, in the main to private investors.

Up freshon the investment sales apron is the ‘bite-sized’ Building 4200 at the well-established Cork Airport Business Park. It’s currently a fully occupied office building, with 9,600 sq ft over two floors in this dedicated office campus location with over 750,000 sq ft of offices, next to the 2006-built airport terminal and served by two hotels, 10 minutes from Cork city.

Building 4200 is let to two occupiers; at ground is Digisoft, a global multiscreen platform provider, and at first floor level is an renewable energy company Element Power Ireland Limited.

Total rent between the two tenants is €97,000 pa, and Digisoft’s lease is due to expire in 2018. Element Power’s lease is up in 2020, says estate agent Anthony Quinlan of Behan Irwin Gosling/Downing Commercial, who guides at €1.2m.

“The investment market has seen high levels of activity over the last number of months with investors seeking a solid return on their money, and consequently we expect a high level of demand for this broad appeal investment”, Mr Quinlan observes, adding “it is the most recent of a number of investments to come to the market in the Airport Business Park.

At a guide of €1.2m, it is within the reach of many private buyers who’ll use the €97,000 a year rent roll as a pension/income.

It follows the offer last October of a similar sized lot, the adjacent Building 4300, let to US-based video, entertainment and broadband communications technology company Arris Communications Ireland Ltd. Let on a 21-year lease from 2000, at a rent of €144,755, it had an autumn guide of €1.55 million via Lisney and HWBC, indicating a 8.6% net interest yield, and is ‘sale agreed’ at c €1.7m

Far larger deals have concluded at the CABP. Agents Isobel O’Regan and Niall Guerin of Savills have sold the 48,000 sq ft Unit 30, let to BNY Mellon on a 20-year lease from 2006, and earning €341,000. It has 24,000 sq ft available as a further asset enhancement feature. Active bidding saw a private, Cork-based buyer emerge from up to a dozen rival offers.

In 2016, Lisney sold the 60,000 sq ft Building 5100 for €5.5 m to a local investor, after going to best bids. Now, just recently a similar-sized 60,000 sq ft investment there has also changed hands for a private vendor, for an unconfirmed sum, possibly around €8.5 million.

Ireland and Singapore-based FineGrain Property have confirmed their purchase of Building 5200, with 60,000 sq ft of offices, and is upgrading 20,000 sq ft for a new let in mid-2018. Existing tenants include Aviva, Aon Hewitt, JLT and Genesis.

Cormac Ó Tighearnaigh, CEO, Fine Grain Property Ireland, said “this acquisition diversifies our portfolio, further illustrating our commitment to invest and develop high quality office spaces located outside of Dublin, in turn assisting to the economic growth of other regional areas. We are pleased to have the continued support of this strategy, from the Ireland Strategic Investment Fund (ISIF), which has invested €25 million in Fine Grain Property’s portfolio fund to date.”

The sale of Building 5200 is understood to have represented sale figure of c €145 per square foot, at a similar psf to the 48,000 sq ft Unit 30, with both deals negotiated by Savills Cork.

DETAILS: BIG/Downing Commercial 021-427000, Savills 021-4271371, Lisney 021-4275079, HWBC 011-7750500

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