A mixed development of commercial and residential buildings in Cavan town is to be offered for sale at a significant discount on the instructions of receivers RSM Farrell Grant Sparks.
Joint agents Savills and Crotty Auctioneers are quoting €3,950,000 for Hampton Court, which includes three blocks of apartments and a separate building for educational use which were completed in 2007.
The educational block was originally developed for apartments but was later converted for use by the Cavan Institute, a third-level college based on the site. It has leased the block for a period of 35 years without any break options. The present rent is €205,000 per annum.
Another commercial building fronting on to the Cootehill Road is let to Klass Cleaners on a long lease, while a further unit is rented by the Cavan Institute on a short-term lease. These two units adjoin the Drumalee neighbourhood centre which is anchored by Supervalu and Valu Pharmacy.
There are 59 two-bedroom apartments in the three adjoining blocks, 29 of them let at an average of €500 per month. Most of the remaining residential units have still to be fitted out and furnished. Even before they are also offered for letting, the overall portfolio is currently producing a rental income of €380,000 per annum.
Loman Dempsey of Savills said Hampton Court is a high-yielding investment where rental income will increase substantially when the remaining apartments are let.