Cork investment for €5.5m offers significant value-add potential
Midleton scheme already producing €404,900 from 36 apartments and McDonald’s letting
The Watersedge scheme includes 15.6 acres of residual lands, which are zoned as open space currently.
Agent Lisney is guiding a price of €5.5 million for a major mixed-use investment with significant asset management potential in Midleton, Co Cork.
Located to the west of Main Street and close to the Market Green Shopping Centre, the development is bookended by both an Aldi and a Lidl store (which do not form part of the sale).
The investment comprises a modern mixed-use scheme laid out in four buildings which include 36 apartments, a restaurant, offices and retail accommodation together with extensive car parking and residual lands extending to 15.6 acres (currently zoned open space). The apartments are fully let with the exception of a number of show apartments and are producing a current rental income of approximately € 324,192 per annum.
The restaurant unit is let to McDonald’s at a passing rent of € 79,994 per annum bringing the total current rental income to € 404,900 per annum. There is potential, according to the selling agent, to increase this rental income to around € 490,000 per annum once the vacant apartments are let and RPZ (rent Pressure Zone) increases are applied.
McDonald’s occupies its unit on a 35-year lease from 2004 with five-year upwards-only rent reviews and no tenant break option giving an attractive term certain of 19 years until expiry.
The remainder of the commercial accommodation extends to 20,000 sq ft and comprises of vacant ground-floor retail units and upper-floor offices, offering the purchaser the opportunity to add value through the letting of these units.
Margaret Kelleher and David McCarthy of Lisney’s Cork office say they expect to see a “good level of demand” for the property given the combination of its current and potential income and the lack of investment opportunities available in Cork and in the wider market at present.