€3m of Office investment sales bode well for Blackpool asset

The property, located within the Atrium, is a 458sq m (4935 sq ft), modern, self-contained suite has a wrap-around external balcony

Suite 4D, The Atrium, Blackpool

Following a series of strong investment sales of prime office assets in Cork City with a combined value of c €3m, another income-producing office property has come to market in Blackpool.

The premises, which form part of the larger Blackpool retail and office development, are occupied by Fiosrú, formerly known as Gsoc, the Office of the Police Ombudsman. The statutory body, which investigates complaints from members of the public about An Garda Síochána, is paying an annual rent of €74,025 under a 10-year lease that expires on September 30, 2028. The secure income underpinned by the covenant strength of its tenant —who is unaffected by the sale — makes the fourth-floor office suite in Blackpool’s Atrium building a particularly attractive investment, said Cohalan Downing commercial directors Margaret Kelleher and Edward Hanafin.

“We are guiding a price of €750,000 for the investment, reflecting a net initial yield of 8.9%, which is very attractive” Ms Kelleher said.

The property in question — Suite 4D — has been recently refurbished “to a very high standard”.

In a corner location within The Atrium, the 458sq m (4935 sq ft), modern, self-contained suite has a wrap-around external balcony — a feature exclusive to the fourth and fifth floors — and is served by a lift. The tenant has the benefit of 15 parking spaces in the adjacent multistorey car park. The building energy rating (BER) is C3.

The arrival to market of the subject property comes hot on the heels of a number of strong investment deals involving several high-profile office buildings in Cork City transacted by Cohalan Downing.

They include:

• Ground floor, no 6 Lapps Quay, which sold for €750,000;
• Second floor, no 6 Lapps Quay, sold for €1,050,000;
• Penthouse floor, no 5 Lapps Quay, which sold for €1,160,000.

The properties are all income-producing and are let to high-quality tenants, including software company Blancco (ground floor 6 Lapps Quay); the Legal Aid Board (second floor, no 6 Lapps Quay), and professional services firm Baker Tilly Ireland GP Ltd (penthouse floor, no 5 Lapps Quay).

Ms Kelleher said the recent sales, “sold with the benefit of tenants to three separate investors”, demonstrated “an appetite for product of that type”.

The Blackpool property is already generating interest among individual buyers looking at pension investments.

The recent series of office sales reflects continued investor demand for prime commercial assets, making Suite 4D in The Atrium a timely market arrival. Approximately 3km north of Cork city centre, the property is adjacent to Blackpool Shopping Centre, where the anchor tenant is Dunnes Stores. The building fronts the N20 Commons Rd, the main national route linking Cork and Limerick. Ms Kelleher said road connectivity is “excellent” and she noted a regular bus service linking Blackpool to Cork city centre.

Existing office occupiers at The Atrium include Blizzard, Everseen, Horizons, and MHC Consulting Engineers. Retailers in the retail park include Boots, Woodies, Aldi, Lifestyle Sports, and Dealz among others.

DETAILS: Margaret Kelleher, E: [e-mail]; or Edward Hanafin, E: [e-mail] T: 0214277717