An end of year sale closure is aimed for the in €1.1m-plus investment sale of an AIB bank branch in Kinsale, Cork.
A refurbished and upgraded building dating back to the1800s, it last sold in 2007, for about €3 million having been acquired by locally-based Fitzgerald Private, for clients.
Billed now as a prime investment property, Kinsale’s Pearse Street AIB bank branch has a rent of €99,700 pa on a 20-year FRI lease from 2007.
There's 3,800 sq ft in all, over two interlinked building with parking/site behind and the location is central, between the Blue Haven Hotel and the just-refurbished Centra after SuperValue moved to an edge-of town new site.
DTZ agent Peter O’Flynn of DTZ now guides at €1.1/1.25 million, about an initial yield of 7.5% and he notes that it is subject to five-year upward only reviews, with a break option in 2022.
“It is highly unlikely at this stage that the tenant will exercise the break, the subject property is the principal banking facility for AIB Bank in Kinsale town and with its improving financial position AIB will continue to play an important role in the financial sector in Ireland for the foreseeable future,” says Mr O’Flynn.
He said that with capital gains tax exemption terminating in 2014 “strong interest is anticipated for this investment which is due to close before the end of the financial year.”
Investment sales are likely to top €4bn this year, with the bulk in Dublin and via Nama portfolio deleveraging and “this investment represents a rare opportunity to secure a high-profile property let to a blue chip covenant with a long unexpired lease term and should improve attractive to a wide range of purchaser type,” according to Mr O’Flynn.
* Details: DTZ Sherry FitzGerald 021-4275454
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