Two business and technology buildings let to Apple and internet security company Trend Micro in the Cork Business and Technology Park will be offered for sale from Wednesday at more than €7.25 million. At that valuation, the investments will show a net initial yield of 10.65 per cent and equate to €119/sq ft.
David McCarthy of Lisney is handling the sale of the two buildings, which extend to more than 5,675sq m (61,095sq ft) and produce a rental income of €808,000. The two blocks have a weighted average unexpired lease term of more than 3.92 years.
Apple Operations Europe trades as a subsidiary of Apple Inc and has been based in Cork for more than 35 years. It employs more than 5,000 people in the city, where it operates from a variety of buildings totalling more than 400,000sq ft.
The detached building going for sale in the business park has a floor area of more than 2,299sq m (24,755sq ft) and was recently fitted out to the highest standard. It has a reception and entrance foyer, open-plan offices with separate meeting and conference rooms and a staff “breakout” and canteen area.
The current rent of €341,964 is due to rise to €359,062 from next July, €377,015 from 2019, and €395,866 from 2021. Apple’s lease is due to run until 2023 and includes tenant break options in 2019 and 2021.
Trend Micro has been in Cork for 14 years and is paying a rent of €466,037 for its detached two- and three-storey business and technology building, which has an overall floor area of 3,376sq m (36,340sq ft). The company’s two leases are due to run until 2026, although they have a break option in 2022.
Cork Business and Technology Park is located on Model Farm Road, about 2.5km west of the city centre.
Lisney is also inviting offers of about €2.2 million for a substantial land holding at Carrigrohane Road on the edge of Cork city. The 106-acre estate includes Inchigaggin House, a nine-bay, two-storey house dating from 1800, which is in need of considerable refurbishment. The property has extensive frontage on to the rivers Lee and Curraheen. Margaret Kelleher of Lisney says the holding may be sold in one or two lots.