From €110m down to 'just' under €1m in Lisney Dublin and Cork investment offers
Big bucks: Block R Spencer Dock has the OPW and Central Bank (on a short lease) as tenants, and potential rent of over €6m pa. Agents Lisney are selling for €110 million
BIG scale, and smaller scale, investors have options at polar ends of the price scale in two Irish cities via national agents Lisney this week.
How big is your wallet, fund, or bank balance?
Want the Central Bank and the OPW as State tenants?
€5m a year rental income for a year or two and potential uplift to c €6.3m pa after that, whilst riding out the pandemic?
But, critically, do you have €110m to splash out?
If so, try Dublin, and a chunk of Block R with 128,000 sq ft and strong income-earning investment at Spencer Dock.
And, if you have 'just' €1m, well, try something more modest, in Cork, at The Atrium in Blackpool
With the Central Bank on a very short lease and the OPW on a longer one for 20 years from 2015 (break option in 2027) with uplift potential from a May 2020 review, Lisney’s James Nugent is selling the Scott Tallon Walker-designed space at Spencer Dock, behind the Convention Centre, right by a LUAS stop and Salesforce’s new 430,000 sq ft offices.
It currently has €1.58m pa rent (€29 psf) from the OPW for 53,000 sq ft in the east wing. Then it also has €3.34m, or €50 psf, from the Central Bank for 64,000 sq ft in the west wing — but that’s on a short lease to April 2022.
Outgoing Lisney chairperson James Nugent says the c€110m Spencer Dock property with initial 4.07% yield (possible 5.24% reversionary) “is likely to appeal to a wide range of investors and may even be bought by a single investor but split into separate funds".
“The west wing provides income from the Irish Government until 2027, and would be considered by institutional investors as relatively dry although the outstanding rent review provides considerable upside," he said.
"On the east wing, whilst the income stream is short term, it is unquestionably secure and will enable a purchaser to ride out the pandemic whilst collecting income, and use the intervening time to consider possible upgrades and a reletting campaign.”
Meanwhile, the shortage of strong property investment options, and negligible/negative returns on bank deposits and other investment products, is expected to direct attention to a sub-€1m offer in Cork City's suburbs.
Key to the interest and bidding will be the lot size, and the prospect of an 8.09% net initial yield, on offer in the investment sale of Unit 2A in The Atrium, in Cork’s Blackpool Business & Retail Park.
It’s offered via Lisney with a €900,000 price guide, by private treaty, on a brand new lease, running for 15 years from the start of this month.
Cork-based Lisney director Margaret Kelleher described the second-floor Atrium office suite of 497 sq m/5,350 sq ft as “an attractive office investment let to a single tenant, and producing a current rent of €80,000 pa exclusive".
Built in the early 2000s as part of a major mixed-use regenerative Blackpool development by Clayton Love Jnr, The Atrium’s a signature, modern, third-generation building distinguished by none other than its central glazed core atrium.
The unit is let to Atrium Facilities Management Ltd, long-time occupiers and on a 15-year lease from November 1, 2020, with a rent review at the end of years 5 and 10 to market rent, with a tenant-only break option on the first day of year six.
The lease includes six car parking spaces in the adjacent multi-storey car park, which also serves the likes of Woodies, Aldi, the multi-screen cinema and other tenants, occupiers, and shoppers. The unit’s tenant is responsible for service charges of c €12,500 pa, insurance, rates, etc.
“We expect strong interest in this, given the limited supply of investment properties available in the market at this price range,” comments Ms Kelleher.
"We’d expect demand from investors seeking a compact, easily-managed investment.”
She adds that the Blackpool Business and Retail Park “is the premier business destination on the northern side of Cork City". Neighbouring office occupiers at The Atrium include AIB, Westbourne IT Global Services, Garda Síochána Ombudsman Commission, and gaming support centre company, Blizzard.
Details: www.Lisney.com
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