Wednesday 16 October 2019

Mallow cinema with €1.2m price tag offers net initial yield of nearly 11pc

Five screens: The Gate Cinema in Mallow’s Market Square complex
Five screens: The Gate Cinema in Mallow’s Market Square complex
Donal Buckley

Donal Buckley

A cinema in Mallow, Co Cork, is being offered for sale with a €1.2m guide price.

Chris O'Callaghan, of Savills Cork, who is handling the sale, said the guide price would reflect a net initial yield of 10.75pc.

Occupied by the Gate Cinema, with more than 12 years to run on its 14-year and four-month lease, it generates a passing annual rent of €140,000. The property extends to 16,746 sq ft, has a five-screen layout with seating for 881 people and is equipped with concession stands.

The only cinema serving the northern part of Co Cork, it is located in the town's mixed-use Market Square complex, which is close to Main Street and is anchored by Dunnes Stores.

An investor would also benefit from 5pc rental caps at review.

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