Investor extraordinaire, Warren Buffett, once commented: “As commercial real estate continues to be sliced, diced, packaged and synthesised into complex investment securities, parking companies operate much like they did when the concrete was laid decades ago — a time when life was much more simple.”
When it comes to commercial property investment, it doesn’t really get more straightforward than car parks.
Consequently, promotion of the Steamboat Quay Car Park, beside the Clarion Hotel along Limerick’s docks, may well raise some interest.
While the regeneration efforts along this region as a whole have been somewhat patchy, the car park is performing well. It is a purpose built facility generating an annual gross income in the region of €320,000.
At present it is being operated by NCPS offering 260 vehicle spaces within the structure and a further 10 surface level spaces. The property serves as the primary car park for the adjacent 158 bedroom Clarion Hotel.
Additional income is derived from tenants of the adjoining 109 apartments and employees of nearby businesses. The agent says the current agreement with NCPS is of a short term nature and can be terminated if required.
The multi-level building is located along the dock road, just a couple of minutes from the intersection with the N18 which becomes the M7 running directly to Dublin. In the other direction is the Limerick Tunnel under the Shannon providing swift access to Shannon Airport and on to Galway.
As such it provides a location that allows convenient access to retailers such as Dunnes Stores, Debenhams, and Brown Thomas, as well as Cruises Street in the centre. Along with this, central Limerick’s main dining and entertainment venues are all within a 10 minute walking radius.
The agents say it is an interesting prospect as Limerick is moving forward with more than one billion euros worth of capital investment over the coming years.
Major developments in the pipeline include a €300m mixed-use redevelopment of the Opera Centre site and the €100m completion of the Parkway Valley Shopping Centre along with planned upgrading of city-wide transport facilities.
Savills Cork is seeking offers in the region of €1.75m; contact: 021-4906123.
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