Monday 26 August 2019

Central Cork units are put on the market for €5.2m

Cohalan Downing is seeking €5.2m for the Winthrop Street property.
Cohalan Downing is seeking €5.2m for the Winthrop Street property.

Peter Flanagan

A prime retail unit in the centre of Cork City's main shopping hub has been put on the market with an asking price of €5.2m.

The property at numbers 4, 5 and the upper levels of 6 Winthrop Street is a stone's throw from Patrick's Street and is among the most popular shopping streets in the second city.

Cohalan Downing is offering the property, which is currently occupied by a McDonald's restaurant for sale. The tenant is not affected by the proposed sale.

According to Brian Olden, who is acting as agent for the sale, the property is a "prime investment property with an established current rental income of €372,000 per annum exclusive".

The property comprises an "exceptionally well presented" part three-storey and part four- storey landmark building extending to approximately 10,072 sq ft (936.6sqm).

The ground floor of number 6 Winthrop Street is in separate ownership and does not form part of this sale.

The property is laid out as a McDonalds fast food restaurant and take away over ground and first floor with ancillary stores and office accommodation overhead.

Ancillary accommodation comprises staff areas, commercial kitchen, cold stores, food stores, changing rooms, training areas, plant room and managerial offices.

The ground floor area extends to 327.8sqm. On the first floor, which covers numbers four, five and six of Winthrop Street, the area is 252.1sqm, while the second floor is 255.6sqm. The third floor is over number 6 only and is about 100sqm in size.

"This is an exceptional profile building fronting Winthrop Street in the heart of Cork's City centre retail district adjacent to Patrick's Street and Oliver Plunkett Street.

Oliver Plunkett Street was recently announced as the winner of the 'Great Street Award 2016' by the Academy of Urbanism in the UK beating Cairns Street in Liverpool and Deptford High Street in London to win the overall prize, the agents add.

"The property has an outstanding established covenant in the form of McDonald's Restaurants of Ireland Ltd," Mr Olden added.

The property is let on a 35-year lease commencing April 1985. As with most properties, the lease is on full repair and insuring terms. It also has five yearly upward only rent reviews.

Beyond McDonalds, adjacent occupiers include a host of well known retailers including Brown Thomas, Peter Marks, Hallmark, Debenhams, Penneys, Vodafone and Dunnes Stores.

The sale of the Winthrop Street property promises to be one of the most closely watched deals in Cork in the weeks ahead. While retail rents in the prime areas of the city are still flat on recent years, there have been signs of an increase in business in the immediate areas. The fact that the lease has a relatively short time left to run is also likely to attract potential buyers.

This is the second time the property on the market in recent years. The current buyer bought the property in 2014.

In a sign of the rebound in the Cork market, the property was marketed at between €3.5m and €4m, but it is understood to have been bought for significantly more than that guide price.

The property sits on one of the most prominent sites in the heart of Cork City.

It is positioned right in the centre of the city close to the likes of Patrick Street and the main thoroughfare in the city.

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