Residential investments with 9% to 11% yields are on offer in two Cork locations via separate receivers and for separate distressed vendors.
The returns will draw immediate investor interest, and a possible upside could be capital appreciation which will be free of Capital Gains Tax if sold on within the next seven years, under measures introduced in Budget 2012.
One offer is a newly-developed block of 20-one-bed apartments, a shop unit and an off-licence investment, in the heart of Cork’s northside on Shandon Street.
The corner block (previously the Belphegor bar) was built by Murrayforde developers, who had assembled sites in Cork city and county for large schemes.
Mostly let, with an available retail unit of c1,500 sq ft on the busy street and with 20 one-bed units, it has rental income potential of €132,000 pa, showing a circa 11% yield, says selling agent Brian Olden of Cohalan Downing, acting for receivers Ernst and Young. It has a guide price of €1.4 million. It had gone for sale in 2004 guiding €3m as a raw development site, before the 20 apartments and other ground floor units were built by Murrayforde when they acquired the site. Meanwhile, a second similar returns offer, but a different more suburban/county package, is the 18 apartment-scheme in Glounthaune village, Ashbourne Villas. It guides at €1.5m.
The privately-developed scheme, near several business parks, has a good number of existing tenants and a maximum rental potential of €140,000 pa, according to agents Savills, who are acting for a receiver.
There’s scope for a 9% return on these ten-year old units of eight three-beds and 10 two-beds spread across the two, three-story blocks, with parking for 32 cars. There’s a commuter rail link across the road, the N25 to Midleton/Waterford. Cork city is six miles away.
Catherine McAuliffe of Savills says two-beds are currently renting at about €600 per month, with three-beds fetching circa €700pm. When fully let, there’s a 9.3% gross return, she adds. Sizes range from 750 sq ft to nearly 900 sq ft for the apartments, with south-facing views over Cork harbour.
McAuliffe says that Ashbourne Villas “is a bright attractive development, with apartments finished to a high specification. The development was built in 2002 and is fully complete with keypad controlled access, with stairs access to upper floors.”
Details: Cohalan Downing 021-4277717, Savills: 021-4271371
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