Saturday 18 November 2017

Munster offices with yields near 10pc

Two office investments in Limerick City and one in Cork City have come to the market with prices ranging between €250,000 and €3.3m.

In Cork's South Mall, its traditional office street, the office buildings 57-59 South Mall and car park at Margaret Street are being sold with a €1.5m asking price.

Extending in total to 14,500 sq ft, the offices are generating rental income of around €142,000 a year. The income from the 0.14 acre car park is €22,500 a year. This would generate a gross yield of 10.97pc.

A major portion of these Cork buildings is let to three long-established businesses O'Flynn Exhams Solicitors, TJ Hegarty & Son Solicitors and Dineen Financial Ltd.

A further 4,000 sq ft is vacant on the upper floors of two of the buildings and Niall Guerin of sales agents Savills says these might generate rents of between €10 and €14 per sq ft.

The Cork property is being sold on the instructions of Ned Murphy receiver Moore Stephens Nathans.

Isobel O'Regan of Savills say this property offers guaranteed income and potential rental uplift once the unoccupied portion has been rented.

In an unrelated deal, the same agents are also acting for a private investor who is selling a part of the ground floor and part of the first floor at Mount Kennett House, a mixed-use building constructed in the mid-1990s on the corner of Mount Kennett Place and Henry Street in the heart of Limerick City Centre.

Extending to 318.65sqm (3,430 sq ft) the property is currently let to two tenants, Fexco and O'Donovan Caulfield Lavin, and are generating a combined rental income of €47,028 a year. It has a guide price of €250,000

Also in Limerick a private investor is selling River House, which is let to the Revenue Commissioners at an annual rent of €345,320, and this is due to rise annually up to 2016 when the figure will be €370,952.

At the asking price of €3.3m Isobel O'Regan of Savills says the initial yield would be 9.8pc. The five-storey block extends to 3,307sqm over five floors.

Irish Independent

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