Scope for growth at €11.2m business park
The hugely-successful Blackrock Business Park in Cork has been brought to the market by Lisney with a guide price of €11.2m.
Located in the city's southern suburb of Mahon, the scheme currently comprises a substantial, purpose-built, single-storey detached office building of approximately 9,066 sq m (97,572 sq ft) on a site of 10.5 acres.
The scheme has planning permission for two additional office buildings, one of which will extend to approximately 101,000 sq ft to the east of the existing building.
The site is extensively landscaped and provides ample surface car parking.
Blackrock Business Park is already delivering long-term secure income from two existing tenants.
Taken together, the development's current passing rent is €857,519 per annum, with a Weighted Average Unexpired Lease Term (WAULT) of over 6.8 years.
The existing office building is laid out in three main divisions.
Abtran occupies 65,800 sq ft on a lease with over 13 years to expiry, while RCI Call Centre (Ireland) Ltd occupies some 20,500 sq ft on a lease with over 10 years to expiry.
The lease to RCI Ireland Ltd is guaranteed by Wyndham Holdings.
There is also an asset management opportunity with one vacant unit of approximately 11,200 sq ft.
Blackrock Business Park's estimated rental value upon full occupancy is, according to the agents, in the region of €1.05m per annum.
The scheme's €11.2m guide price equates to a net initial yield of 7pc, rising to 8.75pc once a tenant is secured for the vacant office accommodation. The figure excludes the development potential of the proposed new office building.
The Park is centrally situated in Mahon, approximately 4km south of Cork city centre with convenient access to the South Ring Road network and the Jack Lynch Tunnel.
It is also close to Mahon Point Shopping Centre, Mahon Point Retail Park and City Gate office developments, which are immediately to the east. Existing office occupiers include blue-chip lawyers Ronan Daly Jermyn, and Intel Security as well as the Mater Private Hospital.
Mahon itself is an established office and business district. Its major occupiers include Dell EMC, VCE, Jacobs Engineering, Voxpro and the Central Statistics Office.
The area has undergone a major transformation into a modern urban quarter. It is now one of Cork's premier business locations and is served with an excellent road infrastructure.
Cork city and its surrounding area, meanwhile, is already home to major names such as Apple, Intel, Johnson Controls, EMC, Pfizer and Eli Lily, all of which attract a skilled workforce to the area.
The city's economic outlook is positive following a number of recent job announcements - including Apple's expansion of its Hollyhill complex, and Johnson Controls' expansion of its global headquarters at One Albert Quay.