Thursday 12 December 2019

€1.75m for prime Cork city offices

26/27 South Mall is producing annual rental income of €103,000
26/27 South Mall is producing annual rental income of €103,000
Ronald Quinlan

Ronald Quinlan

Lisney is seeking offers in excess of €1.75m for a prime office investment opportunity at 26/27 South Mall in Cork city centre.

The property, which is being offered for sale on behalf of Friends First, comprises a purpose-built, seven-storey office building fronting South Mall which extends to a net floor area of 1,543 sq m (16,615 sq ft).

The building is let on full repairing and insuring (FRI) leases to covenants including O'Mahony Pike Architects, Focus Ireland, the HSE and O'Connor Murphy Clune Solicitors. There is substantial potential increase the current annual rental income of €103,000 by securing tenants for the vacant office units.

Demand for high-quality, modern office space remained strong in Cork throughout 2017, particularly among domestic occupiers seeking accommodation in the city centre. In both the city centre and the suburbs, rents continued on an upwards trend in 2017 (prime city centre grew by 15.4pc). Lisney reports renewed interest in South Mall with a number of office sales, including 1 South Mall, 85/86 South Mall, 50 South Mall and 97 South Mall, completing recently.

85 South Mall meanwhile is under construction, with rents pitched in excess of €30 per square foot for the 50,000 sq ft office development.

Commenting on the sale of 26/27 South Mall, Lisney say: "This is an excellent opportunity to acquire an office investment with good rental income with longer-term asset enhancement possibilities."

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