A warehouse building with other potential higher-end uses in Cork city’s western suburbs, close to third-level college CIT, has had a price slash, so that now it can be bought for one third the cost of comparable construction.
And, the well-located building comes back to market at a reduced price despite industrial values having already recovered strongly during 2015.
It was launched in a slack October 2013 market via Savills for receivers KPMG at excess-€1.4m, and now is marked down to €1.2m, with keen interest expected now on its relaunch.
Part of a large block on Melbourn Road, Bishopstown which includes Cork County Council’s Motor Tax office on the Model Farm Road and a strong HSE office presence, it’s the former Bunzl/O’Mahony Packaging and retail unit, and has 42,000 sq ft of warehouse accommodation, and c 4,500 sq ft of offices over two levels, all on a site of 1.54 acres, which may be tight on external space for some logistics users.
It was also available in 2009 for a steep €5.5 million when Bunzl decided to relocate to Blackpool.
Built initially for a plant for Liebert, a larger property here had been acquired in the early 2000s by developer Paul Kenny of the Kenny Group who built the sizeable Parchment Square student accommodation on part of the Liebert site.
Given current and future student accommodation needs for Cork’s third level students at UCC and CIT, might it provide a base for the first purpose-built student scheme in several years?
It is marketed by Niall Guerin and Isobel O’Regan of Savills, who say the location is exemplary, and the reduced asking price well below replacement value.
There’s been a dramatic recovery in value of industrial stock in Cork’s more sought-after locations over the past year, according to Mr Guerin, who says prices in some case had slumped to €17-€20 per square foot, but now some sales in places like Little Island have hit €50-€60 psf, and build costs for modern warehousing can range from €65 to €95 psf, he indicates, adding for those who bought in the last year or two, they bought well.
“If there’s an overseas inquiry right now in Cork for a large unit of 50-60,000 sq ft, there isn’t much available,” Mr Guerin observes, and it’s understood Savills are currently involved in the delivery of one new 55,000 sq ft facility, east of the city, which will be of interest to market watchers and occupiers alike.
This Melbourn Road unit of 47,000 sq ft has quite possibly got a wider appeal than at any other time of offer, suggest the selling agents, listing warehousing, data storage, and redevelopment options among its uses.
Third level institutes CIT and UCC may have storage/accommodation/development needs, it’s indicated, while notable neighbours include Boston Scientific and Stryker among a number of other employers and occupiers in the 79 acre IDA Cork Business and Technology Park on the Model Farm Road.
A few miles to the west, Ballincollig’s major employers include the likes of EMC and VMWare, both in on-going expansions and growth.
Currently the former packaging facility consists of a large warehouse with two roller shutter doors and two internal dock levellers and clear span eaves height of 7.65m.
The two-storey offices are in the south western corner, and include office and kitchenette.
The property has almost 60m frontage to Rossa Avenue by the CIT entrance.
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