An office investment let to a global web and conference call company PGi in the 1,000-job West Cork Technology Park has been put for sale, with a €320,000 rental income and a €2.5 million guide price.
New to market is the 31,000 sq ft Building E, let as an entire to PGi, who are represented in 25 countries globally, with 50,000 company clients and who employ 230 in their Clonakilty-based EMEA HQ, just off the N71.
PGi occupy two buildings in the 29-acre park with nine buildings just on the Cork side of Clonakilty, 40 minutes from Cork Airport.
The innovative West Cork Technology Park was developed nearly 17 years ago by Fleming Construction as an outlier of business parks outside major urban areas, facilitated by high-speed broadband and fibre optic cabling, 48 lines and diversity routers.
Selling agent for the stand-alone, two storey Building E is Peter O’Flynn, MD of DTZ Sherry FitzGerald who describes the proposed sale as a strong office investment and stand-alone property within the West Cork Technology Park, let to a large multi-national and major employer on a long, 25-year lease from 2002, running to 2027.
It’s subject to five year reviews, on upward only terms, with tenant responsible for all outgoings. The building has raised floors, suspended ceilings, and air-conditioning, etc.
“Following the high level of demand for investments in Cork recently, this opportunity, let to PGi, is likely to appeal to a wide range of investors,” says Mr O’Flynn of this long-term investment.
“With a few notable exceptions, comprising larger investment sales, the Cork market has been starved of quality product, but remains buoyant with plenty of investor activity and demand,” he adds.
DTZ describe coastal Clonakilty as a strong business location, with a number of significant employers (South Western and Global Shares are also present here), noting it acts as the gateway to West Cork, a pivot point which encouraged the establishemnt of the campus-style West Cork Technology Park initially.
Interest is expected mainly from local and national investors, “and possibly also investment funds seeking secure long term income.
"This asset represents a very attractive investment opportunity with strong income, let to an enviable tenant covenant with a long unexpired term,” say DTZ, with industrial dept surveyor Eoin Ryan, adding the net initial yield of 12% will be a strong lure.
The last significant sale here in the Technology Park was in 2014 when land, and buildings with some rental income was sold to a Munster investor for receivers Baker Tilly Ryan Glennon for c €1.4m: it included five buildings with rent of €147,000 pa, at a c 10% return, plus 13 undeveloped acres.
Details: DTZ Sherry FitzGerald, 021-4275454
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