Monday 23 April 2018

Cork City office block for sale offering 9.4pc yield

Lisney is guiding €2.75m for this blcok at 1 South Mall in Cork City.
Lisney is guiding €2.75m for this blcok at 1 South Mall in Cork City.
Peter Flanagan

Peter Flanagan

Lisney is seeking €2.75m for an office investment at 1 South Mall, Cork. The property is being offered for sale on behalf of receiver Michael McAteer of Grant Thornton.

The agents claim the block at 1 South Mall is one of the most prominent office buildings in Cork city centre.

It is located between the South Mall and the southern channel of the River Lee with an open aspect over the river and views of City Hall, One Albert Quay and the docklands area.

No 1 South Mall comprises a six storey office building fronting. It extends to a net floor area of 1,624 sq m (17,480 sq ft). The building is let on various leases to covenants including PWC, Royal and Sun Alliance and Lisney. The investment currently produces a rental income of €270,186 per annum exclusive with further potential to increase the overall rent to approximately €314,811 per annum when the third floor of the building is let.

All leases are full repairing and insuring with the tenants responsible for service charges. All upper floor windows in the property were replaced in late 2014 and are double glazed throughout. At present PwC occupy the first, second and fourth floors paying a rent of €176,200 per annum. Royal and Sun Alliance occupy the fifth floor at a rent of €40,000 per annum and Lisney are the ground floor occupier at a rent of €41,986 per annum.

"The asking price reflects a net initial yield of 9.4pc and comment that this is an excellent opportunity to acquire an office investment with good rental income from quality tenants," said Lisney.

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