€7m for Laya’s Cork office

Selling agent CBRE is seeking about €7 million for a single-let office investment at Little Island, in Cork, which will show a initial net yield of 8.12 per cent.

The high-spec block at Eastgate extends to 6,150sq m (66,199sq ft) and is let to Laya Healthcare Ltd (previously Quinn Healthcare Ltd) on a 20-year lease from 2012 at a passing rent of €593,580 per annum. The lease is subject to a five-yearly open-market rent review and break options in 2019 and 2024.

Alongside the four-storey office block are 325 surface car parking spaces.

Laya has 400 staff and is the second largest healthcare provider in the Irish market.

First established in 1997 as Bupa Ireland, Laya was launched in 2 012 following a management buyout of Quinn Healthcare.

Eastgate recently received a strong endorsement when Irish Life spent between €37 million and €40 million on two newly completed office investments in the park.

CBRE says it is expecting strong interest in the Cork investment given its location and the strength of the covenant.