Investment opportunity at Cork Airport Business Park
Savills is seeking €2.4m for an industrial unit at Building 3400, Cork Airport Business Park.
The property is a third generation office and investment opportunity which is currently generating a gross income of €146,904 per annum.
It is let to Logitech Ireland Services Limited on a 10 year FRI lease from September 2012, with five yearly open market rent reviews, with a break option at the expiry of year seven.
The building has a net internal floor area of 19,645 sq ft with potential for rental uplift at the next review in September 2017.
"Both the lot size and location have been in demand in the last 12 months with the sale of a number of buildings in the park, most notably the five buildings in Phase 2 which were acquired by Adel Crest (Norwegian Family Trust)," said Savills.
Cork Airport Business Park is to the south of the city and about 10 mins from the airport itself.
The asking price gives an equivalent yield of 7.5pc and at a capital value of €122 per sq ft provides an excellent value investment opportunity, the firm said.
The sale of Building 3400 will be closely watched in the area as it will likely give a reliable indicator of the state of the industrial market in Cork and the wider Munster Area.
The market aroud Dublin has begun to noticeably improve, with several high profile deals in recent months while rents are also trending up after a long hiatus.
That growth has yet to manifest itself beyond the capital however.
If there is strong interest in Building 3400 however, that could signal an improvement in the industrial market in the region.